DECENTRALISED PLANNING

TRAINING MODULE
1.

Introduction:

Decentralisation of the planning process has acquired

considerable significance with the passage of the 73rd and 74th
Constitutional Amendment Acts.
Decentralisation through the
involvement of local level representative institutions in the formulation of
plans for development as well as their implementation is being advocated
in the interest of efficient utilisation of resources and for ensuring more
equitable sharing of benefit from development.
Decentralisation of the planning process is basically an
exercise in multi-level planning. Although multi-level planning and the
problems connected with it have only recently been subjected to serious
examination in India, the idea of decentralisation as such is not new to
Indian planning. Since 1950-51, when the Planning Commission was
established and the first five year plan was launched, the importance of
carrying the planning process to lower levels such as the state, district,
block, village, etc. has been emphasised. The reasons for the stress on
decentralisation are various. In the first place, the Indian planners
emphasised decentralised for the obvious reasons that in a democratic
framework, unless planning is carried to lower levels, that is to say subnational levels, the process will not be effective. Secondly, the planners
also realised that the participation of the people in the planning process is
essential if the process is to succeed and the participation of the people
can be achieved only if planning is carried to the lower sub-national levels.
It must also be remarked in this context that at least in the earlier years of
planning, the influence of Gandhian thought was fairly pronounced,
although this should not be taken to mean that Indian planning has much
philosophical contact with Gandhian thought. The point is that the Indian
plans attempted to adopt some Gandhian techniques, of which
decentralised planning was just one.
Arguments for Decentralisation :
A number of sound arguments can be listed to support
decentralisation of planning process. First of all the practical impossibility
of a single planning agency being able to make all the detailed decisions
1

which are required at different territorial and sectoral levels of the planning
process. One crucial problem here consists of the flow of information and
data from lower levels in the hierarchy to the Central Planning Agency.
Planning requires not only the formulation of a broad policy framework but
also detailed decisions. Detailed decision-making depends for its success
almost exclusively on the availability of information and data which is
more readily available at the appropriate level for which the decisions are
being made.
Secondly, one of the crucial elements in the planning
process is the presence of an information system. Without an information
system there are bound to be innumerable problems of co-ordination, both
at the state and national levels. The presence of an information system
will also indicate the peculiar needs of certain areas in the country. When
we realise that certain areas have special problems, we will be in a
position to think of solutions which will answer the problem. In the
absence of information and data, there is a tendency to adopt uniform
solutions which are applied all over the country without respect to local
variations and local needs and local problems. In the given situation it is
necessary to base policies on a thorough examination of the local
situations - something which can be accomplished only when we have
access to local knowledge and information.
Thirdly, it is now realised that no planning process could
hope to succeed purely on bureaucratic lines. It is essential to associate
the people with the planning process at all levels. Even though there are
problems never the less there is very little doubt that the planning process
must be sustained by the fullest possible participation of the people.
Public participation in planning depends upon several conditions. First of
all the people should be aware of the functioning of the process. In other
words information is essential if people are to participate. Secondly there
must be a machinery which enables people to participate meaningfully in
the planning process. Thirdly, people must feel that their participation is
not a formality but that they have the ability to influence the functioning of
the process. These three conditions can be met only when there is a
reasonable degree of decentralisation of the planning process, it is most
unlikely that people will participate.
Role Clarification :
The question of decentralisation has two major aspects to it.
One relates to the various agencies of development at the local level and
how best these can be organised to make possible genuine popular
involvement in the process of planning. The second aspect concerns the
2

functional arrangements for decentralisation, that is, the clarification of the

roles of the different units and the coordination among them.
The first prerequisite of multi-level planning is that the roles
of the different agencies should be properly spelled out. Duplication
should be avoided. So also the present tendency of the districts to
attempt to be too comprehensive when they formulate their plans. It has
been demonstrated that despite all the insistence in our five year plans as
planning in the states and the districts, little care has been taken to clarify
the work to be done at these levels and to indicate how their work will
mesh in with the work of the national planning commission. Therefore the
first task in devising a multi-level planning frame in therefore that of role
clarification.
The history of the attempts made in India to decentralise the
planning process are of considerable importance. The First Five Year
Plan was as clear and eloquent as any official document on the subject of
decentralisation. The following lines from the first plan document bear this
out:
"A democracy working for social ends has to base itself on the
willing assent of the people and not the coercive power of the state.
Their own views about their needs and difficulties and the correct
solutions must be elicited and given the fullest weight in making the plans,
in the execution which they will be called upon to assist. Means have,
therefore, to be devised to bring the people into association both at the
stage of formulation of the plans and in their implementation from stage to
stage".
The same position was reiterated in one form or another in
all the subsequent plan documents. The Balwant Rai Mehta Team
appointed in 1957 recommended constitution of statutory elective local
bodies with the necessary resources, power and authority devolved on
them and a decentralised administrative system working under their
control, which became the genesis of the Panchayati Raj System
introduced in the country. The Planning Commission issued guidelines for
District Planning as far back as 1969. In 1977, the Planning Commission
appointed a Working Group under the Chairmanship of Prof.
M.L.Dantwala to draw up guidelines for Block Level Planning.
Another Committee on Panchayati Raj headed by Sri Ashok
Mehta was appointed in 1977. Both the Committees submitted their
3

reports in 1978. In 1983, the Economic Advisory Council to the Prime

Minister presented its report on Decnetralisation of Development Planning
and Implementation in the states. The working group on District Planning
submitted to the Planning Commission in 1984, which formed the basis of
the Seventh Plan proposals on decentralised planning. The next major
initiatives towards decentralised planning was according Constitutional
status to the Local Bodies in 1993. Under this on the planning front three
major initiatives have been envisaged for the new Panchayati Raj
Institutions; These include : (a) preparation of area plans for economic
development and social justice (b) implementation of schemes for
economic development and social justice entrusted by the state
government and (c) the Constitution of District Planning Committee (DPC)
to consolidate the plans prepared by the Panchayats and the
municipalities in the district, and to prepare a draft development plan for
the whole district.
While for (a) and (b) the provisions to be made for the
devolution of the necessary powers and responsibilities have been left to
the discretion of the state governments, the task envisaged under (c) i.e.,
the Constitution of DPC is mandatory under Article 243 ZD.
Planning Implications :
These constitutional provisions mark a significant departure
in the style and substance of planning. Style refers to the democratic and
participatory character of planning. Substance refers to the programme
and project components informed by the goals of growth, equity, stability
and sustainability. It has infected a new conception of a multi level
planning process which cuts across the three layers of the local level and
integrates into the state plan. In the new context, such planning is both a
democratic and technical exercise as well as a management and
negotiation process to obtain the maximum benefits of development for
the local population. For the local tiers of administration, who have so far
been used to the centralised planning approach with its sectoral
earmarking of tends and the mechanical implementation of central/state
sponsored schemes hedged in by their guidelines, it is a new activity and
poses a formidable challenge. The amended Constitution implies the
initiation of a time-bound, planning process and the adoption of planning
methodology that would give adequate scope for the plan proposals to
emerge with people's participation at each level, which will then become
integrated horizontally and vertically into comprehensive area plans, and
then finally `nested' into the state plan and the state budget. This is for the
first time that such a comprehensive multi-level planning process has
been stipulated.
4

Advantages of Local Level Planning :

One of the characteristics of local level planning is the
proximity and close contact of planners to the clientele. This is particularly
true when the local planners are based on the area being planned.
Consequently local level planning is more subject to human factors and
selective analysis. Thus while in national planning, the focus of attention
might be on the growth of the Gross National Product (GNP), planners at
the local level are faced with problems such as providing potable water
supply, fertilizers, seeds and farm-to-market roads to the local people.

Compared to the national the regional level, local level

planning is characteristically weak in institutional support and organisation
for planning. This however, essentially follows from the too centralised
and inverted pyramid structure of the government bureaucracy. Able and
talented technocrats of the government tend to congregate at the central
offices of government ministries, leaving the positions at the lower level
devoid of qualified manpower.

The too centralised structure also at times discourages interagency coordination at the local level. Local level government offices
report directly to their next superior office in the hierarchy as well as
receive, orders and instructions from the same. Coordinated tie-up
among local government offices are by and large not cultivated since the
existence of other offices may even be looked at times as a threat to one's
survival or simply there is no compelling need for coordination. Organising
these local offices to support and participate in local level planing is
certainly one of the prerequisites of a successful local planning strategy.
The direction and purpose necessary in formulating and
implementing local development plans necessarily requires an
organisation that will take charge and coordinate the plans and
implementation activities. Establishing local level planning apparatus, on
the other hand, is not easy. A planning organisation at the local level by
necessity requires a mandate and an authority to demand cooperation if
the usual techniques of doing coordination through consultation is not
effective. Hence it should have the permanence and the necessary
logistics to do its job.
5

Aside from the organisational and institutional aspects of

local level planning, another important factor to consider is a linkage of the
local plan to both the horizontal and vertical areas of the government
politico-administrative hierarchy. This linkage, among others, defines the
explicit connection of a local plan to other plans i.e. local, regional and
national, particularly on the points of priorities, policies and strategies.
The vertical and horizontal linkage should have two dimensions: at a point
of time and through time inter-temporally. This means that the linkage is
not true only at present but also of the future.
The capacity of local level plans to achieve results greatly
depends on removal of constraints to local level planning and
implementation. Some of the constraints can be enumerated as follows:
a)

If national policies to decentralise the process of rural development

were not undertaken, with political will, that could severally limit the
achievements of local level planning, for instance in the form of
budgetary difficulties, land-ownership structures that facilitates
exploitation.

b)

The bureaucracies largely operate within law and order and control
parameters rather than sharing of authority and responsibility with
the rural poor.
Thus even with the best of intentions,
bureaucracies, with traditional orientation could hamper the
process of local level planning.

c)

The lack of optimum methods of organising and institutionalising

the participation of the rural people, particularly where rural
communities are heterogeneous in nature and structure.

d)

The limited managerial skills of local people and organisations.

e)

The difficulty of matching local needs with nationally determined

priorities and of relating that to available resources and budgets.

f)

The long established dependent attitudes of the rural population.

Additional problems may be mentioned relating to the

effective operation of local level planning. It should be noted, however,
that these problems are not true for all areas and this variability may in
fact provide an solution to the problems of other local areas.
The Nature and Objectives of Local Level Planning :
Local level planning may mean differently to various people.
However we can generalise the various concepts of local planning as
either a comprehensive planning of the local subject area or as a partial
6

planning focusing attention to a specific section of the local area socioeconomic system. Comprehensiveness, in the above sense, should not
be taken as the inclusion of the entire sectoral spectrum in the plan but
rather on the treatment of the socio-economic, political-cultural
environment of the local area as a system to be analysed and considered
in the process of planning.
Local level planning is also differentiated from other forms a
planning by the major functions it has to perform. The major functions of
local level planning can be stated as follows:
a)

To adjust general guidelines from higher levels in such a way that

development programmes will emerge that is specifically for the
area for which the level planning is made (top-down linking).

b)

To adjust programmes for lower levels in such a way that they

meet the goals, objectives and resources indicated in the higher
level plans. This adjustment must be done so that the lower level
proposals are protected as much as possible (bottom-up linking).

c)

To integrate and coordinate the multitude of lower level (village,

project and detailed programme) proposals into one consistent
local level plan that is meeting the goals, objectives and targets
from higher as well as lower levels, that can be implemented with
the available resources and indicates the geographical location of
the development activities (horizontal linking).

If the major functions of local-level planning are understood

as mentioned above, its main activities should be the following:
a)

To collect all the plans under implementation or preparation by all

agencies that are involved in planned development activities of
relevance for the area.

b)

To collect all goals, objectives and targets indicated in higher and

lower level plans;

c)

To indicate gaps with the existing or proposed pattern or

development activities and identify new projects and programmes
that have to be elaborated by the relevant agencies in order to
reach the goals and objectives.

d)

To obtain information on the resources available in and allocated to

the area.

e)

To obtain information on the results of previously planned

development activities in the area and the reason for the success
or failure.

f)

To integrate the above information into:

i)

an overall analysis of the present situation;

ii)

a general description of the desirable future situation on the

basis of the accepted goals, objectives and targets;

iii)

a coherent set of programmes of action that can be

implemented with the available resources and had to the
desired future situation.

The above functions and activities of local level planning

may be noted to have a distinct techno-economic bias. Thus, the stress
on the data and analysis, and on the management of economic activities.
A more pragmatic idea, however considered local level planning as sin
quanon for local participation in planning and implementation.
Consequently, local level planning is visualised to perform the following
role on the short term:
a)

To provide a tool to small groups, voluntary associations to identity

their needs, ensure availability of resources and delineate the
implementation procedure.

b)

To provide a framework for multi-sectoral activities to be carried out

in the region (village, block) with local resources and matching
grants from government.

c)

To educate groups and local bodies in local-level planning

techniques.

and on the long term:

a)

To assist in the integration of local level plans (sectoral or regional)

with National Plans.

b)

To promote the decentralisation of development administration and

implementation procedure.

c)

To build-up data bank needed for comprehensive local-level and

macro plans.

Similarly, local level planning in India needs to be directed

towards (a) a clearer understanding of the felt needs of the people, (b)
8

ascertaining the area; physical and human resource potential, (c)

identifying constraints of development, and (d) expansion of the people's
participation in planning and implementation.
Organisational Essentials of Planning at the Local Level.
One of the prerequisites of an effective planning at the local
level is a full and sustained commitment on the part of the government. An
indication of this commitment might be the presence of a locally based
development planning organisations. This organisation does the planning
and at the same time coordinates the implementation of development
projects in the area. To be operational, however, this locally based
planning organisation has to have a capable manpower and logistic
support. Similarly, to be effective, it has to have a clear mandate to
formulate the development plan of the area and its role and
responsibilities clearly delineated vis--vis other government agencies.
2. Need for capacity building:
In our search for greater efficiency for setting and pursuing
developmental goals, training of manpower becomes an important
working tool. In the context of decentralised planning in particular, a well
conceived capacitation programme assumes greater significance. There
are certain subject areas: concepts, methods and techniques, institutional
framework, general planning procedures, basic exercises and case
studies, which may be deemed as the essential knowledge and skills that
have to be disseminated catering to the target groups.
There is lack of trained personnel both in terms of numbers
and adequacy of training. Training deficiencies are often noticed in the
acquisition and mastering of necessary skills and techniques. The
inclination of right approach towards planning also requires attention.
In order to further strengthen and make the process of
decentralised planning more effective, it is necessary that a proper system
of planning should be developed, analytical skills of the planning
personnel sharpened and they should also be trained to assimilate and
integrate seemingly different points of view, display responsiveness and
cultivate a habit of exploring options. Decentralised planning is essentially
a reflection of the belief that it is a step forward in the direction of bringing
the planning process within the reach of the local people. Therefore
considerable attention is to be given to developing a sustaining force
which would help ensure operationalisation of decentralised planning
process. A scientific and comprehensive decentralised planning process
would require high degree of expertise. Therefore there is a need for
creating a capable planning machinery at the local level.
9

1.

AIM:

The module aims to enhance the planning and implementing

capacity at the local level to strengthen the process of decentralised
planning.

2.

Target Group:

Group A, B and C

Heads of the Deptts/Directorate and all Group A Officers,

District and Sub-divisional Level Officers and Block Level Officials.

3.

Duration of the Course :

1 WEEK ( Five Working Days)

4.

Training Objectives :
The course is designed to achieve the following objectives;

A)

To recognise and illustrate the importance and elements of

decentralised planning.

B)

To encourage the development of skills and understanding of the

fundamental
principals, methodology and techniques of
decentralised planning.

C)

To enhance the participants capacity to formulate district/sectoral /

village plans.

D)

To sensitize participants to the particular role of people's

participation in decentralised planning.

10

ENABLING OBJECTIVES
A.1 Enabling Objectives :
At the end of the course, the trainees will be able to :
A.1.1 Evaluate the importance and significances of decentralised
planning
A.1.2 Describe the concepts and objectives of decentralised planning
A.1.3 Analysise the process of decentralised planning in India
A. 2 Enabling Objectives :
At the end of the training course, the trainees will be able to:
A.2.1 Define the various approaches to decentralised planning
A.2.2 Analyse the various stages in decentralised planning
A 2.3 Describe and state
decentralised planning

the

various

methodologies

used

in

A 2.4 Understand and apply the techniques used in decentralised

planning
A.3

Enabling Objectives:
At the end of the training course, the trainees will be able to :

A 3.1 State the various elements of planning

A 3.2 Analyse the planning mechanism at the local level
A 3.3 Prepare district/sectoral plans/village plans
A 3.4 Understand the fundamentals of project management
A.4

Enabling Objectives
At the end of the course, the trainees will be able to :

A 4.1 Understand the importance

decentralised planning

of

people's

participation

in

A 4.2 Analyse the institutional apparatus for people's participation

A 4.3 Describe the various stages of peoples participation
11

Enabling Objective - A.1

Sr. No.
A1.1

Content/
Sequence

(1)
Evaluate
the
importance
Decentralised Planning

(2)
of -

A1.2

Methods

Describe the concepts and objectives

of decentralised planning

What
is
Decentralisation
Why
decentralised
planning is important
Various issues in Decentralised planning
Advantages of Decentralised planning
1) Types of DeCentralisation
2) Elements of Decentralised
Planning
3) Objectives of Decentralised
Planning
4) Strategies for Decentralised Planning

Media
(3)

Performance
Aid
(4)

(5)

Time
(6)

Trainer
(7)

Lecture
with White
interaction
during O.H.P.,
the sessions/Brain Film
storming, discussion

Board, Hand Out & 75 mts.

Video Background
Reading
Material

Internal/
External
well
versed
in
decentralised
planning

Lecture
with White,
interaction
during OHP
the
sessions/discussion

Board, Hand Out and 75mts.

Background
Reading
Material

Internal/
External
well
versed
in
decentralised
planning

12

A1.3

Analyse the process of Decentralised Planning in India

-

An overview of De- Lecture

centralised planning in interaction
India
the sessions
Recommendations of
various Committees
Decentralised plan- ing
& five year plans
Recent initiatives for
Decentralised planning

with White
during OHP

Board, Hand out & 75 mts.

Background
Reading
Material

Internal/
External
well
versed
in
decentralised
planning

13

Sr. No.
A 2.1

A 2.2

Enabling Objective A.2

(1)
Define the various approaches to
decentralised planning

Content/Sequence
(2)
1)

Top
down/
bottom
up
approaches to
decentra- lised
planning
2)
Multi-level
planning
3)
Decnetralised
Planning
Models
Analyse the various stages of 1) Policy
Framedecentralised planning
work
2) Identification of
Problems
3) Creation
&
Management
of
data base
4) Resources
generation
&
Budget allocation
5) Plan preparation
with
alternative
strategies
of
development

Methods
(3)
Lecture
Discussion

Discussion
Exercises
Film Show

Media
(4)
and White Board, OHP

Performance Aid
(5)

Time
(6)

Hand
Out
& 75 mts.
Reading Material

White Board, OHP, Hand Out & OHP, 75 mts.

Video Film
Video Film

Trainer
(7)
Internal/
External were
versed
in
decentralised
planning

Internal/
External

14

A 2.3

A 2.4

Describe and state the various 1) Identification

of
methodologies
used
in
Projects
decentralised planning
2) Project Work
3) Identification
of
Target Groups
4) Project
Management
Understand and apply the 1) Assessing
and
techniques used in decentralised
prioritising
felt
planning
needs
and
problems
2) Participatory Rural
Appraisal
3) Spatial Planning
4) GIS
5) Planning
proposals
for
development plans

Lecture
Discussion

White Board, OHP, Hand Out & Check 75 mts.

Video Film
List

Internal/
External

Discussion &
Exercise

White Board, OHP Hand out & Check 75 mts.

& Flip Chart
List

Internal/
External

15

Enabling Objective A.3

Sr. No.

Content/Sequence

(1)

(2)

Methods
(3)

Media

Performance Aid
(4)

(5)

Time

Trainer
(6)

(7)

A 3.1

State the various elements of 1) Planning process Lecture

planning
at the state level
Discussion
2) Planning process at
the district level
and blow

& White
Board, Hand
Out
& 75 mts.
OHP, Flip Charts
Background
Reading Material

Internal/
External

A 3.2

Analyse the planning mechanism 1)

at the local level
2)

Discussion
Exercises

& White Board, OHP, Hand out & Check 75 mts.

Flip Charts
List

Internal/
External

A 3.3

Prepare district/Sectoral plans

Discussion
Exercises

& OHP, White Board, Hand out & Check 75 mts.

Video Films
List

Internal/
External

Preparation
of
plans
Identification of
resources
3) Village planning
methodology
Various stages and
elements of district plan
1) What is a plan
2) How it is to be
prepared
3) Technical
knowledge
4) Schemes/
programmes
5) Role of DPC

16

A 3. 4

Understand the fundamentals of 1)

project management
2)
3)
4)
5)

What is a project
Discussion
Project approach Exercises
to planning
Project planning
cycle
Project appraisal
Monitoring
and
evaluation
of
projects

& OHP, White Board

Hand
out
Background

& 75 mts.

Internal/
External

17

Enabling Objective A.4

Sr. No.
A 4.1

A 4.2

A 4.3

Content/Sequence

(1)
Understand the importance of 1)
peoples
participation
in
decentralised planning
2)

Methods

(2)

Importance of
peoples
participation
Participatory
development
3)
Techniques for
participatory
planning- YRA
Raj
Analyse
the
Institutional - Panchayati
apparatus
for
peoples
Institutions
participation
- Gram
Sabha
Powers
and
Functions
Describe the various stages of - Decision making
peoples participation
- Implementation
- Participation
in
benefit sharing
- Participation
in
evaluation

Media

(3)
Lecture
Show

&

Lecture
Discussion

Performance Aid
(4)

(5)

Time

Trainer
(6)

Film Hand
out
& White Board, OHP 75 mts.
Background
& Video Film
Reading Material

(7)
Internal/
External

& Hand
out
& White
Background
OHP
Reading Material

Board

& 75 mts.

Internal/
External

Lecture, Discussion Hand out & Check White

& Exercise
List
OHP

Board

& 75 mts.

Internal/
External

18

COURSE ON DECENTRALISED PLANNING

WORK SCHEDULE
Day
Monday

09.3010.00
a.m.

10.00-11.30 a.m.

11.45-01.00 p.m.

02.00-03.15 p.m.

03.30-04.45 p.m.

04.45 p.m.

Plenary Session - Decentralised

Welcome
and Planning,
Introduction
Importance &
Need

Decentralised
Decentralised
Project Work
Planning
: planning
in
Concepts
and India
Objectives
- Experience
Sharing

Tuesday

Approaches
Decentralised
Planning

Decentralised
Planning
Methodologies
Techniques

Wednesday

Data
and Data Collection Plan Preparation : Field Visit
Information base Methods
& Steps
and
for Decentralised Tools
Guidelines
Planning

to Planning
mechanism at
the
State,
District
and
village level

Decentralised
Project Work
- Planning
& Methodologies &
Techniques

Project Work

19

Day

09.3010.00
a.m.

10.00-11.30 a.m.

Thursday

Understanding
Village Planning
- Methodologies &
Teqhniques

Friday

Peoples
Participation
Decentralised
Planning

TEA BREAK
LUNCH BREAK

11.45-01.00 p.m.

02.00-03.15 p.m.

03.30-04.45 p.m.

Understanding
Project Planning Resource
Village
and Management
Mobilisation
Planning
- Methodologies
& Techniques

Panchayati Raj Presentation

of Feed back
in Institutions and Group Reports
Evaluation
Decentralised
Planning

04.45 p.m.

Project Work

& Valedictory

: 11.30-11.45 a.m. & 03.15-03.30 p.m.

: 01.00-02.00 p.m.

20

21

PROGRAMME CONTENT
Day One

09.30-10.00 a.m.

Registration

Session I
10.00-11.30 a.m.

Plenary Session : Welcome and Introduction

Welcome and brief presentation by the Programme

Director/Chairperson setting out the core objectives of
the programme

Introduction and Background Information

Establish the key issues from the perspective of each

participant (Expectations)

This session could also be used as a ice-breaking session. There are a

number of standard ice-breaking exercises which could be used. Icebreakers are exercises that help break inhibitions, shyness and facilitate
interaction of group members with each other. They help create an
atmosphere of friendliness, informality and mutual acceptance. The
following exercise could be useful. These are only illustrative exercises
and the facilitators could use or design any other exercise.
Exercise:
Me and My Environment
Objective :
To identify various forces (internal and external) acting upon
an individual in a village.
Materials :
Chart paper, pen and tape or pins
Process :
1.
2.
3.
4.

Draw a figure with a person in the centre of a circle

Draw arrows pointing at the persons inside the circle as well as
outside the circle
Discuss what these arrows represent to them and what can be
done about it
How can they organise themselves?
22

11.30-11.45 a.m.
Session II
11.45-01.00 p.m.

Tea Break
Decentralised Planning : Importance and Need

What is decentralisation

Why decentralised planning is important

What are the issues in decentralised planning

Advantages and disadvantages of decentralised

planning

A video film of 15 mts. duration introducing the theme may be useful

followed by a brainstorming exercise. The participants could be asked to
record the important points on a `flip chart'. The facilitator will stick the
`flip charts' on the wall/panel board and work with the participants to
cluster the issues into common themes which could be used for
discussion.
01.00-02.00 p.m.

Lunch Break

Session III
02.00-03.15 p.m.

Decentralised
Objectives

Planning

Concepts

Decentralised planning; conceptual framework

Elements of decentralised planning

Types of decentralisation and their significance

Objectives of decentralised planning

Strategies for decentralised planning

and

The facilitator could make a brief presentation covering the above

mentioned issues and then the session could be opened for discussion. It
is important to ensure that a healthy interaction takes place and the
facilitator acts more like a moderator. Conceptual clarity of decentralised
planning is an important element of this session. Handouts could also be
distributed to the participants.
03.15-03.30 p.m.

Tea Break
23

SESSION IV
03.30-04.45 p.m.

Decentralised Planning in India : Experience

Sharing

An overview of decentralised planning in India

Usefulness of decentralised planning in developing

country like India

Brief presentation on the recommendations of various

committees on decentralised planning

Decentralised planning and five year plans

Recent initiatives to strengthen the mechanism of

decentralised planning (73rd Amendment Act)

It is important for the facilitator to understand that decentralised planning

in India has not had the desired effect due to attitudinal problems.
Therefore the facilitator may also discuss/highlight the concept of power
sharing, attitude of the bureaucracy, importance of people's participation
in a democratic process.
After a brief presentation and discussion the participants could be asked
to identify the bottlenecks in decentralised planning in India and the same
could be discussed further.
The facilitator should encourage a
participative method of learning.
Session V
04.45-05.30 p.m.

Group/Project Work

The participants be divided into various small groups and

specific tasks can be assigned to them. The groups could be asked to
identify the themes on which they would like to work on the next three
days and present their group reports on Friday. In case they are not able
to identify the themes, then the facilitator should list a set of themes and
the groups could choose one of them.
While group formation, care should be taken to ensure that
the group is a mixed one in terms of age, education, experience and
position of the participants. The group may select a group leader who will
have the role of group coordinator. Internal faculty members can be
attached to groups as group facilitators. The groups can use brain
storming and problem solving techniques.

24

Day Two

09.30-10.00 a.m.

Review Session

Personal reflection of the previous day and recording of key learning

points
Objective : To ensure that the participants have space to relate the
previous days experience to their own needs and establish a record of
their own learning (this is for participants only).
Facilitators will :
Invite the participants on an individual basis to reflect and write down their
answer to the following :

Use this space to record :

a)

What do I know now:

b)

What else could I know

What are the most important learning points for you from the work you
have done yesterday?

25

Session I
10.00-11.30 a.m.

Approaches to Decentralised Planning

Top down/Bottom up approach

Trikkle down theory

Local level planning

Multi-level planning

Decentralised planning models

The facilitator should make a brief presentation followed by discussion.

11.30-11.45 a.m.

Tea Break

Session II

Planning Mechanism
village level

11.45-01.00 p.m.

at the State/District and

Structure of planning process in the state

Structure of planning process at the district and block

level

Village planning; role of gram sabha

Importance of District Planning Committees

Integration of local plans with state plan

After a brief presentation the facilitator could ask the participants to

prepare a flow chart of the planning process at various levels.

Session III
02.00-03.15 p.m.

Decentralised Planning : Methodologies and

Techniques
Introduction to methodologies used in decentralised
planning
26

Planning methodology phases

District Planning Methodologies

a)
b)
c)
d)
e)

approach
strategy
content
structure, process of development
analysis : steps and tools

Goals, objectives and targets

Capacity to implement plans

03.15-03.30 p.m.

Tea Break

Session IV
03.30-04.45 p.m.

Decentralised Planning : Methodologies and

Techniques

Spatial planning

Geographical information system

Computer aided techniques

In this session some case studies can be discussed for a comparative

analysis of the methodologies and techniques. A handout would prove to
be useful to the participants.
04.45 p.m.

Group Work

The groups will continue to work on the themes. The group facilitator will
review the progress of the groups and help them in the process while
ensuring that group dynamics is maintained.

27

Day Three

09.30-10.00 a.m.

Review Session

The process followed on the second day will be repeated. The course
facilitator should also get a feel of the progress being made. He should try
to establish a personal rapport with the participants.
Session I
10.00-11.30 a.m.

Data and Information base for Decentralised

Planning

Importance of data and information base

Existing data base and organisations

Types of data

Sources of data

Availability of data at various levels

11.30-11.45 a.m.

Tea Break

Session II
11.45-01.00 p.m.

Data Collection : Methods and Tools

Secondary data

Primary data

Importance and types of survey

Data collection and analysis

Interview method

Planning and conducting focus groups

Sampling procedures

Participatory rural appraisal

28

The facilitator should ask the participants to discuss the importance of

data base and the various methods and tools used in data collection. The
participants could be divided into small groups and they could be asked to
identify the various sources of data being used by them and the method of
collection of such data.
Role play exercises could help the participants to understand how to
conduct interview.
Session III
02.00-03.15 p.m.

Plan Preparation : Steps and Guidelines

Importance and need of a plan

Sectoral plans

Special component plans

Plans for the weaker sections

Steps in preparing a plan

Instructions and guidelines on plan preparation

After a brief presentation on the above mentioned topics/issues by the

facilitator. The participants may be asked to follow the processes and
guidelines to prepare a draft plan. The facilitator should guide them in this
exercise. Before leaving for field visit the finer points of the same may be
discussed. This will enhance the process of learning through field
observations.
03.15-03.30 p.m.

Tea Break

Session V
03.30- 05.30 p.m.

Field Visit

Going out and looking at the problems is one of the simplest and best
ways of understanding the problems and issues involved. It is better to
walk around and see how things are being done.
A suitable/appropriate site may be selected for field visit which is located
close to the place of training. While on field visit the participants should
be told to :
29

Prepare a reasonable persuasive rationals for your observation,

Know what it is you are looking for,

Observe what the process is,

Investigate what skills are involved and what the apparent

problems are,

Find out the organisational structure involved

Try to keep the activity informal

Walk around and observe, ask a few questions if need be.

Group Work
The groups continue to work on the select themes under the guidance of
the group facilitator. They should be encouraged to discuss/interact and
identify the core issues.

30

Day Four
09.30-10.00 a.m.

Review Session
The process followed on the second and third days
may be repeated.

Session I
10.00-11.30 a.m.

Understanding Village Planning Methodologies

and Techniques

Profile of a village

Need for village development plans

Basic premises of village development planning

Methodology for village development plan

Formulation of objectives
a)
b)
c)
d)
e)
f)

Session II
11.30-01.00 p.m.

Poverty alleviation and employment generation

Community welfare
Infrastructure
Land use
Sustainability
Welfare of the weaker sections

Understanding Village Planning Methodologies

and Techniques

Data base

Types of surveys

Participatory techniques

Institutions at the local level

Gram Sabha role and responsibilities in planning

process

Success Stories

After a brief presentation the facilitator should proceed step by step in

preparing a village plan. The participants should be involved in this
exercise of village development plan.
31

This will help them to understand the concepts, methodologies and

techniques much better.
Session III
02.00-03.15 p.m.

Project Planning and Management

What is a project

Project approach to planning

Project planning cycle

Stages in project planning

Project appraisal and sensitivity

Monitoring and evaluation of projects

The facilitator should help the participants to understand the project

planning cycle. The participants could be asked to identify a project and
draw up the planning cycle accordingly.
03.15-03.30 p.m.

Tea Break

Session IV
03.30-04.45 p.m.

Resource Mobilisation

Importance of resources for decentralised planning

Current mechanism/organisational set up for resource

mobilisation

Resource generation and sharing

Operational impediments and institutional problems in

resource mobilisation

Budget and its elements

Optimum utilisation of resources

04.45 p.m. Group Work

The groups should be asked to firm up their group reports and the final
group report for presentation should be prepared.
32

Day Five
09.30-10.00 a.m.

Review Session
The programme facilitator should follow the same
process as on the previous day

Session I
10.00-11.30 a.m.

People's Participation in Decentralised Planning

Concept of participatory development

Importance of participation

People's part
icipation in the planning process

Participation of the weaker sections

11.30-11.45 a.m.

Tea Break

Session II
11.45-01.00 p.m.

Panchayati Raj Institutions and Decentralised

Planning

Brief history of Panchayati Raj Institutions

Importance of 73rd Amendment Act

Role of Panchayati Raj Institution in the planning

process

Role & responsibilities of Gram Sabha's in the

planning process

Implementation of schemes/programmes by the

panchayats

Capacity building of PRI's

The facilitator can show a film on Panchayati Raj and the theme could be
discussed in detail apart from a brief presentation.

33

Session III
02.00-03.15 p.m.

Presentation of Group/Project Reports

The groups will present their groups/project reports. The facilitators can
comment on the merits/demerits of the groups reports. The group reports
will also be a mechanism to evaluate as to what extent transfer of learning
has taken place.
03.15-03.30 p.m.

Tea Break

Session IV
03.30-04.45 p.m.

Feedback and Evaluation

This is a very important session. Formal feedback may be taken. The

participants will evaluate the programme through the standard evaluation
proforma given to them.
Session V
04.45-05.30 p.m.

Valedictory Session

This is a ceremonial session. Certificates of course completion takes

place and the programme is formally closed.

34

Mode of Assessment

Assessment is an important component of any training programme.

During the programme assessment will be carried out at different intervals
as detailed below:
1.

At the beginning of each day during the review session through

formal and informal feedback.

2.

The participants will be divided into groups and will prepare a group
report on a theme and the same will be presented before a panel of
facilitators, who would comment on the methodology, content and
conclusions of the report. This will enable the facilitators and the
participants to evaluate the extent of transfer of learning that has
taken place.

3.

At the end of the programme through a formal evaluation

questionnaire.

35

SAMPLE EVALUATION PROFORMA

COURSE EVALUATION QUESTIONNAIRE

(To be filled-in by individual participants at the end of the course)
(Note: Please fill in the items in the questionnaire. Your objectivity
will help us to improve the future Course)
1. Name of the Institution:
2. Title of the Course and
Dates conducted:
3. Course Objectives:

4. Did you receive advance intimation from the Institution about the
programme? If so, did you respond to the Institution?
YES

NO

5. What do you think about the structure and organisation of the Course
to meet the objectives?
Very well
Structured
4

Well
Structured
3

Some-what
Un-structured
2

Very
Un-structured
1

Weighted
Average

36

6. How useful will this training be to you immediately in your job?

Very Useful
4

Quite Useful

Of limited use

Not at all
Useful
1

Weighted
Average

7. How useful is this training likely to be for the future jobs you may
handle?
Very useful
4

Quite useful

Of limited use

Not at all
Useful
1

Weighted
Average

Not at all
Practically
Oriented
1

Weighted
Average

8. Practical orientation of the Course:

Highly
Practical
4

Practically
Oriented to a
Great extent
3

Practically
Oriented to a
Limited extent
2

9. How far have you been benefited from interaction with the fellow
participants during the Course?
Substantially
4

Considerably

Fairly

Not at all
1

Weighted
Average

10. How far was the Course material supplied relevant and related to the
Course content?
Extremely
Relevant
4

Considerably
Relevant
3

Fairly
relevant
2

Not at all
relevant
1

Weighted
Average

37

11. To what extent are you satisfied with the following:

( The Institution should delete the rows which are not applicable)

a)
b)
c)
d)
e)
f)
g)

Reception
&
Transport
Residential
Accommodation
Food Quality
And Service
Class room
Facilities
Library
Facilities
Computer
Facilities
Interaction with
The Faculty

Excellent

Very
Good

Good

12.

Assessment of training Faculty:

(Kindly fill up the Table-I of Annexure-V)

13.

Which parts of the Course did you find most helpful?

14.

Which parts of the Course did you find least helpful?

Fair
1

Weighted
Average
WA

38

15. Your overall impression of the Course:

Excellent

Very Good

Good

Fair

Weighted
Average

16. Did the Course give you any specific ideas about improvements in
your working situation when you get back:
YES/NO

17.

If yes, can you spell them out briefly?

18. Any other comments/observations you wish to make about the

Course?

(Optional)
Date:
Place:

Name:
Designation:
Organisation

39

HARYANA INSTITUTE OF PUBLIC ADMINISTRATION : GURGAON

Assessment of the Faculty to be filled up by the participants (See Column No. 11 of the Annexure V)
(To be annexed with the participants Course Evaluation Questionnaire)
S Day & Date
r.
N
o.
1. Monday
2.

Tuesday

3.

Wednesday

4.

Thursday

5.

Friday

Duration in
Hours

Topic

Faculty name
internal
&
external
Exc.
4

Assessment
Very Good Good Fair weighted
3
2
1
Average

40

GUIDELINES FOR FACILITATORS

The purpose of this section is to enable the facilitators to understand the

various techniques/approaches available to them. The topics brief will
enable them to have an idea on a specific topic so as to enable them to
focus more on the content. Not all topics are being covered in this
section. This section is divided into two parts.
Part One

Creating conditions of learning

Part Two

Subject Brief

41

PART-1
CREATING CONDITIONS OF LEARNING
WHAT THE FACILITATOR MUST DO
Before beginning the training programme, the trainer should
learn about the trainees. He should know who they are, their age, where
do they come from and what work do they do. He will need to discover
what the trainees can already do and what they know about
decentralised planning.
Encouraging the trainees to talk about themselves and their
background in the orientation period is very important. It helps the trainer
discover more about the trainees but also allows the trainees to share
and compare their experiences. From this the trainer will learn not only
the background of each individual but also what the trainees expect from
the programme. The trainer may find that some individuals are naturally
more opinionated, and perhaps argumentative, than others. The trainer
should not try to argue the point with such individuals, but having
identified them, he will need to slowly change their opinions through the
course of the programme by demonstration. The trainer show know
exactly what areas the trainees and training in and he will need to make it
clear exactly what the trainees will be expected to learn.
In a course on decentralised planning the trainer will need
to arrange the means by which trainees can practice the skills they are
expected to develop. It will be necessary to arrange training exercises
wherein the trainees can learn to do what the learning objective
describes. Trainees must be given repeated opportunities to practice the
techniques used in decentralised planning.
The Conditions of Learning :
In order to facilitate the running of a training programme the
trainer will need to carefully plan his teaching, practical arrangements
and facilities. The trainer should encourage the trainees to discuss the
various practices, which are carried out by him in the field. He should
discuss them and praise those, which are useful. He will then need to
demonstrate the benefit of the methods he is expecting them to learn and
encourages the trainees, through practice and discussion, to adopt
appropriate and new methods.
Trainees can learn tasks better if they are given the
opportunity to practice them repeatedly. The trainer must therefore be
skilled in this firm of training. There are a number of steps, which may be
followed by the training to make the programmes much more useful and
effective. The following steps are important to be followed:
42

A.

Selection of Trainers

The selections of trainers and resource persons should be

based on the following criteria:
-

Expertise in the subject matter

Ability to apply the interactive methodology of the

programme;

Professional credibility and appropriate reputation among

other practitioners.

Ideally, a panel of trainers should be primarily composed of

practitioners from the relevant profession, accompanied by experts in the
field of decentralised planning.
B.

Briefing Trainers

It is important that trainers are adequately briefed on the

following matters:

C.

Organisational aspects of the professional group to be

trained;

Categories and number of trainees participating in the

programme;

Particular issues of current concern in relation to the

professional guidance to be trained.

Instruction for Trainers

Whatever their previous experience or level of expertise,

the course trainees themselves should be carefully prepared for this
particular assignment. As a measure of quality control it is recommended
that written instructions, in addition to pre-course oral briefings is
followed. The instructions should cover all points outlined below:
1.

What are the objectives of the course?

-

To recognise and illustrate the importance and elements of

decentralised planning

Encourage the development of skills and understanding of

the fundamental principles, methodology and techniques of
decentralised planning
43

2.

To
enhance
participant's
district/sectoral/ village plans.

capacity

to

To sensitize participants to the particular

participation in decentralised planning

formulate
people's

What is the course Methodology?

A typical course session consists of a brief presentation by

the resource person, followed by the application of a participatory training
methodology. Plenary discussions are open to all and are led by the
resource person delivering the session.
3.

What is expected of the trainer with regard to the course?

Before the course:
-

Study the materials sent in advance, with particular

attention to the sessions to which you are formally
assigned;

Prepare very brief lecture notes, keeping in mind the time

limitations set out in the course programme;

Think about what practical recommendations you might

make to the trainees, based upon your professional
experience, to assist them in implementing various aspects
of decentralised planning in their daily work;

Use concrete examples like newspaper clippings, project

evaluations and excepts from reports to provide actual
cases to illustrate your point. You can also select a
hypothetical exercise from the materials or develop one of
your own for each session, you are to present or for use in
working groups;

Use visual aids (overhead projector/black board/white

board/flip chart) whenever possible;

Ensure that any comments or recommendations made are

consistent with the standards set out in the training
materials;

Encourage active group participation and discussion;

Provide advice and comments on the training materials;

44

After the Course

D.

Participate in a final debriefing session with the rest of the

training team;

Review and revise your materials, on the basis of this

experience.

Tips for Making Presentations

A few basic points are to be kept in mind:

a)

Make eye contact with participants;

b)

Encourage questions and discussion;

c)

Do not read from the notes - be conversational and natural,

speaking in a forceful and animated voice. No mater how
interesting the material, a monotone presentations will dash any
hopes of engaging the audience attention;

d)

Watch the time-time your presentation before hand and keep a

clock or watch in view while you are making it;

e)

Move around - do not present from your chair. When responding

to a question, approach the person who asked it;

f)

Use visual aids, transparencies and charts should be simple, in

point form and should not contain too much information. If you
must provide detailed information to reinforce presentations, do so
in a handout and review the basic points contained in the handout
with the trainees. Provide participants with copies of visual aids
for later study and review;

g)

Do not criticise - correct, explain and encourage;

h)

Have participant's use the written materials provided. Materials,

which are not opened during the course, are likely never to be
opened.

i)

Facilitate the participation of individuals who tend not to speak up.

Draw then out with direct questions and then acknowledge the
value of their comments. Pay particular attention to ensuring
equal participation from women members who may be
accustomed to discriminations within their professional setting.
45

j)

Structure your presentation; the old basics are best in this regard :
every presentation should have an introduction, a body, a
conclusion and a summation of major points;

k)

Prepare in advance - know your subject. Follow these basic steps

in preparing the session:
-

Refer to the training materials provided and to the

programme

Note the time available for the session

Prioritize the subject mater - be sure to core, the most

important (must know) points;

Prepare your lesson plan;

Draft your speaking points (introduction, body, conclusion,

summary of major points)

Select the exercise and questions to be used

Select or prepare your visual aids (handouts, overhead,

transparencies etc.)

Practice your presentation until you can deliver it naturally

and confidently and within the time limit.

Training Techniques
There are many techniques/approaches available to the
facilitators. Twelve of them are set out below, together with some of their
attendant advantages and disadvantages.
1.

Lecture

A lecture is a structured talk, usually accompanied by visual

aids, e.g. OHP films, flipchart, and slides.
Advantages: suitable for large audiences where participation is
not required. It allows for the content and timing to be planned in detail in
advance.
46

Disadvantages: a lively presentation style is needed, with regular

changes of pace and media for successful delivery. Low levels of
interaction and feedback may make it difficult to assess what has been
communicated.
2.

Case Study

A case study is a written examination/description of a

situation, often based on real life, which encourages learning by
analysing the case, defining the problem(s) and proposing solution(s).
Advantages: opportunities for analysis and individual or group
discussion on key points of case and problem solving.
Disadvantages: may be difficult in a large group situation. May
over-simplify the true complexity or political climate of a situation.
3.

Role-Play
The enacting of roles in a `safe' training environment.

Advantages: Face-to-face situations, if correctly set up, allow the

participant to experience a full range of emotions. Enables rapid trainer
and/or co-participant feedback/coaching plus the opportunity to try again.
Disadvantages: often need a lot of planning if they are to be
realistic. If not managed properly they can lead to embarrassment for
participants. The best ones are usually rehearsed rather than off-thecuff.
4.

Role-Reversal

The enactment of reversed roles by the learners in a

simulation so that they can appreciate the other person's situation and/or
feelings.
Advantages: usually face to face where it enables people to
appreciate the other person'
s position.
Disadvantages: The same as role-plays.

47

5.

Films/Videotapes
Lectures, dramatized case studies or mini plays.

Advantages: very visual and can use animation or humour to

good effect. They can be stopped or wound back at any point for
explanation or discussion.
Disadvantages: can be expensive to make, hire or buy. Do not
rely on the title alone as a descriptor of the context. It must be watched
in its entirety and any prompts etc. prepared in advance of the showing.
6.

Brain Storming

Brain storming is a way of breaking out of a rut. If what you

have been doing to solve a problem is not working, then you must
change what you are doing in order to solve it.
Advantages: no critical judgement is allowed. Quantity not quality
is the purpose. It is, good to build on to or use somebody else's idea.
7.

Discussion

The free exchange of opinions and information that can be

open or controlled. An open discussion follows the members' priorities; a
controlled discussion follows the prepared agenda of the leader/trainer.
Advantages: discussion can help promote group development or
cohesion. It allows for the expression of ideas and the development or
adjustment of opinions.
Disadvantages: the group's dynamics may affectparticipation.
Can be very time consuming, especially open discussion. Attitudes and
opinions may harden and/or group processes may hinder.
8.

Coaching

A process where a `coach' through discussion helps a

colleague to learn to solve a problem or complete a task.
Advantages: the coach may not be the trainee's manager. It may
be any two individuals, one of whom is experienced in the subject matter
and one who is wishing to learn. It can often employ a problem-solving
or specific task-oriented approach. It is quick and easy to set up and can
be used to develop both individuals.
48

Disadvantages: coaching demands high levels of interpersonal

skills. Some people find it very difficult to coach and adopt a directive
style that can affect the outcome. Results usually take some time to
achieve.
9.

Action Learning

Groups of individuals, often from different functions, come

together to work on a real business problem. A `set adviser' facilitates
each group.
Advantages: it is action based and focuses on achieving
immediate results. Double benefit of solving the business problem whilst
developing staff within the organization.
Disadvantages: the group dynamics and processes may affect
the output. It needs a very trusting environment to generate high quality
solutions to problems. It must be structured and the group must meet
very regularly, which their management may resist.
10.

Open of Flexible Learning

A generic term which refers to a range of approaches

where the learner has some choice over the pace and time of learning.
Typical materials include workbooks, audio, video or computer-based
training employing CD-ROM, interactive video or software packages.
The learning package may include one or more of these tools to assist
the learner. There are an increasing number of off-the-shelf packages or
the material may be produced to meet specific learning needs.
Advantages: opportunity to train staff at a variety of location and
even at their desk. Good for targeted training and can be significantly
cheaper than conventional course-based training if a significant number
of people in the organization require the same training.
Disadvantages: initial set-up costs can be high and some tutoring
may be necessary to encourage and assist the trainee, particularly in the
early stages of learning.
11.

On-the-Job Training (`Sitting with Nellie')

The trainee sits with an expert (Nellie) and is shown how to

perform the basic tasks associated with the job. The training comprises a
mixture of direction and coaching and the trainee calls upon `Nellie' for
help whenever an apparently insoluble problem is encountered.
49

12.

Handouts and Other Written Material

Supplementary materials are a speedy and efficient way to

communicate factual information. They enhance the oral explanations by
providing carefully worded examples and illustrations. They are also a
means for bringing in outside sources such as quotes and charts. Use
handouts only to make a point or get across information that you can not
explain better another way.
Here are some tips for using written materials:

13.

If you pass out materials in the class give trainees

time to read them. Don't talk until they have finished.

Discuss the material or relate it immediately to the

topic at hand

Explain the materials before you hand them out or

after - but never explain while you are distributing
them.

Project Sessions

In a training programme learning must come from the

learner and the trainee must connect the known with the new. Project
Sessions are, perhaps, the most effective way to bring these two
education principles together. They ask the learner to use new skills.
But because they offer hands-on-experience, they also draw on the
learners established abilities and help build both skills and knowledge
bridges to new learning.
be followed:

To create effective project sessions, the following tips may

1.

Make the project a task the learner will have to perform on the
job. If this is not possible, develop one that is as close to the
real situation as possible.

2.

Set up the project so that the trainees can practice as many

new skills or processes as possible. If necessary include skills
or processes you have not taught yet, but only if they are
closely related to those you have taught. In other words, the
50

project can challenge them to do more than practice what you

have taught if such steps are a logical outgrowth of what they
have already learned.
3.

Make the project challenging, but not impossible. Projects that

are tool easy are boring; ones that are too difficult are
disheartening and demotivating.

4.

Allow time for work on the project during your course session, if
only for initial planning.

Project sessions are excellent vehicles for group activity.

They can be effective as individual assignments as well, so alternate the
two for best results. Be prepared to give considerable feedback.

51

PART ll
SUBJECT BRIEF
I.

Decentralised Planning : Concept & Objectives

1.

Purpose of the Session :

Each participant should understand the concept and

objectives of decentralised planning so that he can appreciate the
rationales behind adopting decentralised planning.
2.

Subject Brief:

Decentralised planning can be defined as planning at

different levels or a `multi-level' planning. In other words decentralised
planning is a system through which planning is attempted at different
administrative and executive levels so that there is greater interaction
between the developmental need and priorities of smaller areas (Micro
regions) and different social classes with the sub-national and national
levels, development policies and goals. Decentralised planning is neither
a substitute to centralised planning nor an exclusive bottom-up process
of planning. It is in fact a two-way process which begins both at the top
level (national and macro level) as well as at the bottom-level (local level)
and merges with other at a point below which centralised planning
becomes irrelevant and above which micro-planning becomes
meaningless.
The objective of this paper is to examine the scope and
effectiveness of decentralisation of planning and administration. The
paper assumes that decentralisation can be conducive to more effective
coordination and consistency, greater access to governmental services,
increased involvement of the people in development planning, more
effective delivery of public services for meeting basic human needs and
increased accountability of governmental agencies.
Need for Decentralisation
The growing interest in decentralised planning and
administration is attributable not only to the disillusionment with the
results of central planning and the shift of emphasis to growth-with-equity
policies but also to the realisation that development is a complex and
uncertain process that cannot be easily planned and controlled from the
centre. Decentralisation is often justified as a way of managing national
economic development more effectively and efficiently. But it is obvious
that governments that have tried to decentralise during the 1950's and
1960's have not always had effectiveness and efficiency as their primary
52

goals. They have rarely embarked on a course of decentralisation

primarily for economic reasons. Indeed, the economic impacts of
decentralisation have not usually been calculated before hand. Thus
recent experiments with decentralisation cannot be assessed entirely by
economic criteria.
In many countries decentralisation is pursued in reaction to
technical failure of comprehensive national development planning or the
weak impact of multi-sectoral, macro-economic development
programming. Neither of these have significantly increased the ability of
Central Government to formulate, articulate and implement national
development policies.
Objectives of Decentralisation
Decentralisation is often seen as a way of increasing the
ability of Central Government officials (bureaucracy) to obtain better and
less suspect information about local and regional conditions, to plan local
policies more responsively, and to react more quickly to unanticipated
problems that inevitably arise during implementation.
In theory
decentralisation should allow projects to be completed sooner by giving
local managers greater discretion in decision-making so as to enable
them to cut through the `red tape' and the ponderous procedures often
associated with the over-centralised administration.
In some countries decentralisation is seen as a way of
mobilising support for national development policies by making them
better known at the local level. Local governments or administrative
units, it is assumed, can be effective channels of communication between
the national government and local communities. Greater participation in
development planning and management supposedly promotes national
unity by giving people, in different regions in a country, a greater ability to
participate in planning and decision-making and thus increases their
share in maintaining political stability. Greater equity in the allocation of
resources for investment is presumed more likely when representatives
of the weaker sections of the society participate in development decisionmaking.
Moreover, decentralisation is an ideological principle
associated with objectives of self-reliance, democratic decision-making,
popular participation in government and accountability of pubic officials to
the people. As such it has been pursued as a desirable political objective
in itself. Although developing country governments have offered a wide
range of justification for decentralising, the results have been mixed.
Third world governments have faced myriad problems in designing and
implementing programmes for decentralised development administration.
Even where the programmes have been relatively successful, not all of
53

the anticipated benefits have accrued to either central or local

administrative units. Ultimately decentralisation is a political decision and
its implementation a reflection of a country's political process.
Assessing decentralisation at its face value - that is, by the
degree to which power and responsibility for planning and managing
development activities have actually been transferred from central
agencies to other organisations - would lead to pessimistic conclusions.
For example, in India, despite the attempts to decentralise development
planning and administration, the system remains highly centralised even
today. The quasi public institutions have actually expanded the power
and control of the Central Government at the expense of the local
governments were centrally created but not linked to established local
organisation and sources of political and financial support. As noted,
authority is commonly delegated to local governments, but they are not
given the resources to perform their new functions. Therefore, local
governments still function as bureaucratic instruments of the centre
rather than as generators of alternative values, preference and
aspirations.
Forms of Decentralisation
Different forms of decentralisation can be distinguished
primarily by the extent to which authority to plan, decide and manage is
transferred from the Central Government to other organisations and the
amount of autonomy the decentralised organisations achieved in carrying
out their tasks. Consideration of local government as an instrument of
decentralised development is a study of continuing tension between
alternative conceptions, ideas and definitions, because these are
determined by alternative images in the mind of the observer. These
tensions and subsequent confusions underline concepts of decentralised
development, but they are always important in understanding local
government. It is fairly obvious, but not always made explicit, that local
government encompasses a wide variety of structures, roles and
behaviours, a factor that takes on more significance, when it is linked with
the concept of decentalisation.
3.

Discussion Questions :

A brain storming session can be held on the advantages and

disadvantages of decentralised planning.

54

II.

District Planning

1.

Purpose of the Session :

Each participant should be able to evaluate the importance

of district planning.
2.

Subject Brief :

District Planning in the context of 73rd Amendment Act can

be viewed as a co-ordinating process of local or micro-spaces. It has to
deprive inspiration and support from local communities of the district and
it has to work to strengthen them and, thus, to strengthen the national
unity.
The major thrust of District plan, therefore, must be to
create conditions for generating micro-level development initiatives. It
should attempt to unite the people for common causes, build their
confidence, build integrated self-managing micro-societies and promote
self-reliance. Success of a district plan should be seen in the degree of
local initiative rather than in action from above.
District planning should no longer be a local replica of
national planning. In fact is should try to feel those gaps which national
planning leaves unfilled. While national planning has to be based on
abstraction of field level realities, the district planning has to be fully
aware of these realities. While the macro-level national planning sees the
forests, the district planning must see the trees. The task of district
planning has to be complementary and supplementary to macro-level
national planning. It is the tasks of enabling the people to take
responsibilities of development on their own shoulders. In other words,
the main task of district planning in development from within :
3.

Discussion Questions:
State the major thrust of district planning?

55

III.

District Planning Methodology

1.

Purpose of the Session :

Each participant should be able to explain the various

planning methodologies being used in district planning.
2.

Subject Brief :

Considerable literature has accumulated on the

methodology to be adopted for district level planning. As far back as
1969 Planning Commission had issued very detailed guidelines to the
states and through them to the Districts indicating how the plans should
be prepared. Later in 1982, Planning Commission set-up a working
Group to review the progress of District Planning and to suggest further
action required to be taken. This group gave its Report in 1984. In
respect of the guidelines issues in 1969, the Group came to a conclusion
that they were much too detailed and needed simplification. Accordingly
new guidelines were incorporated. The report of the working group on
district Planning has become the basic literature guiding the district
planners. Here and there, states have brought about improvements and
adjustments and the planning commission also has issued
supplementary instructions from time to time but, by a large, methodology
enunciated in the report has remained the backbone of District Level
Planning. The group visualised the planning methodology in four distinct
phases:
1)
2)
3)
4)

the pre-planning phase

the planning phase
the implementation phase
the monitoring and evaluation phase.
Stages in District Level Planning:

In a very general way the following would be the stages in

the preparation of district plans.
I.

Pre-requisite - State Level Action

a)
b)
c)

Indication to a district of the likely availability of resources or

at leas the likely increase in percentage terms over the
previous years allocation.
National and state level objectives to be kept in mind.
Certain specific programmes which would have to be
maintained.
56

III.

District Level :
a)

Meeting of district level officers to discuss state-instructions

and work out a road programme for action. Similar
meetings are indicated to be held at the Block levels.

b)

Preparation of sectoral profiles based on data showing

development and gaps. Data is analysed, achievements
and progress reviewed and the strengthens and
weaknesses of existing approaches are identified.

c)

Preparatory proposals are worked out. Keeping in mind

sectoral priorities and these may also be consultation with
local level elected representatives.

d)

Programmes having a bearing on other sectors are

discussed in meetings whose departmental views are
reconciled.

e)

After the sectoral views are firmed up plan, proposals

indicating schemes, priorities, locations, benefits,
expenditure requirements, phasing, etc are made over to
the care planning personnel.

f)

Planning people scrutinise the proposals in the light of

National, State policies as well as the feasibility of
schemes.

g)

The District Planning Committee (DPC) discusses the plan

proposals and consolidate the plan proposals.

h)

A Draft District Plan is prepared and submitted to the state

for consideration.

Planning methodologies have to be understood only as a

integral component of state policy. No planning methodology can be
deemed state or perfect for all time. A District Planning methodology
should also be concerned with the following:
a) Approach
b) Strategy
c) Content
d) Structure, process stage of development
e) Analysis : steps & tools
In the case of District Planning the term methodology is
applicable in the following substantive contexts :
57

1.

For preparing the resource inventory of the district.

2.

For identifying the lead sectors and strategies for planning

3.

For assessing the needs of the people and in preparing a

prioritized statement of needs

4.

For formulating projects

5.

For assessing the intra-areal disparities in development and

allocating resources

6.

For the appraisal of the ongoing and new projects

7.

For monitoring the

performance.

progress of projects and plan

Seen on a macro-scale, there are three tiers in planning at

the district level:
1.
2.
3.

District
Block
Village Panchayat

There are specific functions to be performed at each of

these levels. One should be fairly clear about the purpose and functions
of planning at the local one is set to plan-otherwise, there is every chance
of a plan becoming a dysfunctional and overlapping exercise.
A district development plan should :
1.

Provide for an over-all district development design or framework

within which block and sub-block plans could be prepared.

2.

Set the goals and objectives including the targets which the blocks
must achieve

3.

Set the limits of the external assistance within which block plans
and village plans are to be prepared.

4.

Give details of projects and schemes which have to be

implemented by district level development authorities.
Give details of the programmes and project which are to be
implemented at the block-level, but can be planned only at the
district level because of their implications for more than one block.

5.

58

Now, it has to be noted that the goals, objectives and

targets to be set at the district level have to confirm to three conditions :
1)

goals, objectives and targets set at the state level.

2)

Capacity to implement the district plans, and capabilities of

the blocks and villages to achieve the objectives and
targets set at the district level.

Moreover the contents and focus of the district development

plan would therefore be determined by

3.

1)

the development policies of the state/nation

2)

the local resources - physical, human and fiscal, and their

development potentialities, and

3)

special problems, if any, of the district such as poverty,

ecological imbalances, high rate of unemployment, low
productivity etc.

Discussion Questions

Explain the stages of district planning? Identify the stages with the
planning process being adopted in your district.

59

IV.

Project Planning & Management

1.

Purpose of the Session:

Each participant must be aware of the importance of project

planning and its management and also the various stages involved in
project planning.
2.

Subject Brief :

Project planning is a tool by which the local level

functionaries can identify good projects. It is a mechanism that can
enable them to make sound investment decisions. It provided planers at
local levels with a methodology of comparing and presenting costs and
benefits of alternative project proposals, and assists them in deciding
which of the alternatives is the best one.
Project planning is a part of the larger planning process,
and not independent of it. It is important to recognise the inseparability of
project planning from the overall planning process, as at times are
impression is sought to be created that the search for projects can begin
only when a `plan' has been prepared, while at other times it is ar
gued
that the plan should be finalised only after projects have been identified
and selected.
Project planning itself has a cycle of its involving several
sequential and iterative steps. The following seven steps have been
identified to constitute the project planning cycle:
1.
2.
3.
4.
5.
6.
7.

Project identification and appraisal

Prefeasibility studies
Feasibility studies
Detailed design
Project implementation
Operation and maintenance
Monitoring and evaluation

60

The project planning and management cycle can be illustrated as

follows:
Page 10 OPMalik

1.

The local level functionaries will not find this sequence any
different from the one that is used for planning of relatively large
scale development projects. All projects large or small, regional or
local have to traverse the entire sequence, although the degree of
detail as well as the rigor with which the various stages in the
sequence may be dealt with may vary. Following this sequence
helps planners in making better decision.

2.

Exercise : What is project planning? Illustrate the various stages

of the project planning and management cycle?

3.

Discussion Questions :

On the basis of the project planning and management

cycle, try to illustrate the planning process in your area.

61

V.

Monitoring and Evaluation

1.

Purpose of the Session:

Each participant should be aware of the methods by which

local communities can monitor and evaluate the on going projects.
2.

Subject Brief :

Decentralised management of planning process also

implies that effective arrangements should be made to assess the
progress of implementation and to take timely decisions to ensure that
progress is maintained according to schedule. Monitoring assesses
overall project effects, both intentional and unintentional, and their
impact.
Monitoring is linked to improved management efficiency
therefore it must be integrated with the project management structure.
The performance of the monitoring function at either the intermediate or
levels of planning would be the responsibility of the respective planning
teams recommended for these levels which can quickly collate,
summarise and present the information to decision makers.
Monitoring and evaluation should not only be restricted to
discovering the impact, effects and benefits of particular projects. While
this is important, it is necessary in the context of decentralised planning
or multilevel planning to broaden the perspective of evaluation by
inquiring into the impact of decentralised planning on the whole in brining
about social and economic change in the area, and particularly as to
whether the processes of development have percolated evenly across
rural areas.
3.

Discussion Question :
Why monitoring of projects is important?

62

VI.

Spatial Planning

1.

Purpose of the Session :

Each participant should be able to understand the concept

of spatial planning out its application.
2.

Subject Brief :

Spatial planning is the sum total of the concepts,

approaches, methods and techniques of evolving a desired spatial
organisation and structure. It is often used co-terminus with regional
planning. Theoretically speaking, the concept of space are more
dynamic and open than the concepts of region. Space cuts across
regional boundaries. It is a process which is continuous, temporally,
vertically and horizontally. In practical terms, integrated regional planning
can be considered to be an important dimension of spatial planning.
Spatial planning is an exercise to determine the allocation
of sectoral resources in places and areas in a way that :
a)

Sectoral investments give highest social and economic returns

and maximum support to each other.

b)

Productive activities and social facilities are available to all those

who need and deserve.

c)

Differences incomes and welfare among the people and areas are
reduced, if not eliminated, and

d)

A spatial structure conducive to planned development of the

country or region is evolved.

It may be recalled that spatial organisations and structure of

human activities are determined by the nodes through the networks. The
efficiency of the spatial structures depends upon the location and density
pattern of the nodes, the shapes and density of the networks, and the
quantity, quality and direction of the flows. The task of spatial planning is
to analyse the spatial structures, evaluate the efficiency against he needs
of the national and regional economies, and to generate structural
changes to meet the objectives of planned development.
One of the important tasks of spatial planning is to integrate
the spatially dual economies through successive locational decisions
leading to the development of a spatially balanced social and economic
63

structure. The second task is to identify the economic activities, given

the local, regional and national resources - physical, human and financial
- and needs which can be located at various places selected to help fill
the gaps in the settlement hierarchy and generate greater flow of goods
and service among the places. Thirdly, spatial planning attempts to
evolve a system of transportation and communication network which
facilitates the expected flow. And finally, spatial planning specifies the
institutional infrastructure including administrative and planning which can
effectively implement the spatial plan.
3.

Discussion Question:
What is spatial planning? Examine its main tasks?

64

VII.

Data Collection

1.

Purpose of the Session :

Each participant should get an idea about the type and

nature of data that is need for decentralised planning.
2.

Subject Brief :

Data forms the backbone in the planning process. Only

data can provide the necessary base and reliability to local planners.
Without data, these will always be an element of uncertainty and doubt in
the minds of planners as to whether their assessment of the situation is
right. These are two points concerning data collection that should be
taken note of. First, data collection is not a neutral exercise it is closely
related to the objectives one had in mind. In this sense, it is distinct from
a statistical handbook. Thus, it is hardly useful for local level planners to
collect all kinds of information. It is important to recognise this because
in many cases either there is too much information or too little of it more
often it is irrelevant to the aims in mind. This situation has to be avoided
by making a careful selection of data that may be considered relevant.
The second point to be noted is that qualitative data are
almost as reliable as quantitative data. For identification of local level
projects two types of data would be necessary to be collected. The first
type would consist of data that are external to the local areas, which
would help planners in understanding the general development climate,
including development priorities and strategies.
The second type would comprise all data internal to the
area concerned. This should enable planners to fully comprehend the
development problems as well as enable them to identify development
possibilities and potentialities of the area concerned. Although data of
the first type can be obtained by reviewing and examining the
national/regional policies, plans and programmes, surveys at these levels
will need to be conducted for generating data useful for project
identification. These levels are :
1.
2.
3.

Households
Villages/towns/settlements
Development institutions

65

Household Survey
The purpose of household survey is to obtain a clear
understanding of the needs, aspirations and capabilities of the people.
These surveys are designed to generate information on the standards of
living of the people in the community : their income levels, employment
structure, holdings and assets, access to services and facilities and their
social status. These surveys can provide useful information as to who
does what in the community, and why have certain sections of the
population been lift out of the mainstream of development? Are there
any social and cultural barriers affecting their development? Are the
various services and facilities adequate? Etc. Household surveys are
also reliable for assessing the value systems of the people and the kind
of development style they would prefer to have.
Exercise : Explain the purpose of a household survey?
Village Survey
The object of village level surveys is to generate data on
resources (land, water, fisheries and animal stock), their present levels of
utilisation, the availability of and accessibility to economic services
(markets, banks, storage facilities and nurseries), social facilities (health,
education, family planning) and infrastructure (road culverts, bridges,
canals,irrigation channels, tube wells etc.). They are resource surveys at
the village level.
Survey of Development Institutions
A survey of institutions such as the various types of
organisations for specific groups (women, youth, weavers, fisher men,
landless, agriculturals etc.) can given planners useful data on what their
development priorities are, how each group perceives its problems, as
well as how these problems can be effectively tackled.
Project ideas are generated through such surveys. The
entire exercise requires considerable skill in conducting surveys,
analysing data, and compiling them for the use of planners.
3.

Discussion Question :

Discuss the importance of data collection and various types of

survey? Do you follow these methods to collect data.
66

VIII.

People's Participation

1.

Purpose of the Session :

Each participant should be able to appreciate the

significance of people's participation in decentralised planning at various
stages.
2.

Subject Brief :

Decentralised planning can be successful only when

popular participation is pursued both as an end and as a means. As an
end, it is an end, it is inevitable extension of the national effort and
commitment to bring the rural masses into the mainstream of
development process. As a means, popular participation should subserve the objectives of all components and aspects of development
enabling the people to shoulder responsibilities and to command their
own resources.
Generally speaking there are three basic approaches or
concepts of popular participation. They are mobilisation, mediation and
self-management. The approach largely followed in developing countries
including India is the mediation approach. In this approach people's
institutions are established with statutory backing and elected
representatives who manage these institutions are responsible for
decision making. The technical, financial and other logistic support is
provided through the administrative infrastructure.
Literate on people's participation in the development
process have identified the following four kinds of participation as ones
that warrant major concerns:
a)
b)
c)
d)

Participation in decision making

Participation in implementation
Participation in benefit sharing
Participation in evaluation

These four kinds of participations are said to constitute

something of
a cycle for rural development activity.
People's
participation in development planning at the local level needs a
institutional mechanism. In India Panchayati Raj Institutions have been
created for this purpose. Even though Panchayati Raj Institutions wee in
existence since 1959, these institutions have not acquired the status and
dignity of people's representative bodies to generate momentum through
67

active participation of the people in the development process due to a

variety of reasons. These include mainly insufficient devolution of
powers, lack of financial resources and clear cut identification of
development schemes appropriate different tiers of the Panchayati Raj
Institutions. These power including the preparation of development plans
and their implementation are highly centralised. The Constitutional
Amendment Act, 1992 provides for the first time democratic
decentralisation of the planning process. It provides the constitution of
elected bodies for rural development at different levels of the
decentralised structure of the planning process by conducting elections
regularly with due representation to SC & ST and women in the elected
bodies. These bodies have been vested with powers to raise resources
locally and to provide funds. Central allocation for special programmes
such as Poverty Alleviation, Employment Generation etc are allocated
directly to the Zila Parishad at the District level. In all 29 functions
relating to rural development are entrusted to the Panchayati Raj bodies
under the Eleventh schedule. The states may by law empower such of
the area levels to the local bodies as are found necessary to prepare
economic development plans with social justice and implement the
schemes including those listed in the eleventh schedule. A District
Planning Committee is proposed to be constituted to consolidate the
plans prepared by the local bodies in the District and to prepare the
overall District plan.
3.

Discussion Question :

Discuss the importance of Panchayati Raj Institutions and

also the salient features of the Panchayati Raj Act of your state.

68

IX.

Participatory Rural Appraisal

1.

Purpose of the Session :

Each participant should be able to appreciate Participatory

Rural Appraisal as a methodology for interacting with the rural people.
2.

Subject Brief :

Participatory Rural Appraisal (PRA) is a methodology for

interacting with villagers, understanding them and learning from them. It
involves a set of principles a process of communication and a menu of
methods for seeking villager's participation in putting forward their points
of view about any issue and enabling them do their own analysis with a
view to make use of such learning. It initiates a participatory process and
sustains it.
PRA is a means of collecting different kinds of data,
identifying and mobilising intended groups and evoking their participation
and also opening ways in which intended groups can participate in
decision making, project design, execution and monitoring. It provides an
alternative framework for data collection and analysis. Because of its
participatory nature, it is an useful methodology to focus attention on
people, their livelihoods and their inter relationship with socio-economic
and ecological factors.
PRA constitutes a process of involvement with rural people
for indigenous knowledge - building exercises. It is a way of learning from
and with villagers to investigate, analyse and evaluate constraints and
opportunities. PRA is sometimes known as Participatory Rapid Appraisal
when the emphasis is on both participatory and rapid. The emphasis on
`rapid' however, is move in terms of data collection and less in terms of
the process of development or even implementation of plans. Other
names are also used for describing PRA, some of which are Participatory
Rapid Rural Appraisal (PRRA) and Participatory Learning Method
(PALM).
PRA can be of different kinds namely (a) exploratory (b)
topical (c) deductive (d) research training and statistics (e) planning and
implementation and (f) monitoring and evaluation.
3.

Discussion Question :
Why is PRA important In decentralised planning?
69

X.
1.

Resource Mobilisation
Purpose of the Sessions

Each participant should be aware of the process of

resource mobilisation and also the constitutional provisions for it.
2.

Subject Brief :

In most countries the central government has the power to

raise resources for exceeding any other tier of government. Whereas in
a unitary system the entire resources are mobilized by the central
government and then funds are made to devolve down to lower tiers, in a
federal structure, all territorial tiers are invested with powers, to raise
resources but these powers at exaction diminishes as we more down the
various tiers of government. Irrespective of the form of government, it is
inescapable that resources must devolve to all lower tiers of planning
which are engaged in planning.
Every planning tier which is called upon to discharge
particular functions must be armed with financial capacity to do so and
hence allocation of financial resources required to perform those
functions efficiently, has to be made. In the context of multi-level
planning this implies that the funds required for the implementation of the
projects
in the various planning tiers are to directly devolve to the
relative tier, responsible for planning at that territorial level, which implies
that the establishment of appropriate financial disaggregation
procedures, of suitable budgeting methods and re-appropriation
procedures ought to have high priority.
Financial decentralisation includes disaggregation of
financial resources from the central level to the sub-national levels,
between the various planning tiers which are made responsible for
planning, at various levels, and in doing it must be borne in mind that in
sub-national allocation of resources weightages must be given to regional
disparities, imbalances in are development and other features of
backwardness. The transfer of resources from higher territorial tiers to
lower ones ought to be based on set principles which would sub serve
the plan objectives of the country.
For a successful decentralisation exercise, local community
must be encouraged to generate a portion of the required resources
locally, for at least two reasons : one it would imbibe in the local
population a sense of participation among the people, and two, motivate
70

the masses to achieve self reliance at least partially.

The 73rd Constitutional Amendment provides for a
mechanism of resource mobilization from the view point of the finance,
three areas are of relevance: Article 243, Section H indicates the powers
to impose taxes and also the funds of the PRIs. Section (I) of the same
article requires the Constitution of a Finance Commission to review the
financial position of the PRIs. Another section to be considered is (G) of
the same Article which is the 11th Schedule which lists the functions to be
performed by the PRIs.
For the local bodies to satisfactorily perform the functions
that are assigned they will have to have matching powers to raise funds
or matching access to funds raised by the state government. Ideally
speaking, the local bodies should have adequate powers to raise
matching resources of their own.
The Finance Commission for each state is to review the
financial position to the local bodies and to make recommendations to
the Governor as to
a)

b)

the principle which should govern:

i)

the distribution between the state and panchayats of the

nets proceeds of the taxes, duties, tolls and fees leviable by
the state, which may be divided between them under this
part and the allocation between the panchayats at all levels
of their respective shares of such proceeds;

ii)

the determination of taxes, duties, tolls and fees which may

be assigned to or appropriated by the panchayats;

iii)

grants-in-aid to the panchayats from the consolidated funds

of the state;

any other matter referred to the Finance Commission by the

Governor in the interest of sound finance of the panchayats.

The emergence of State Finance Commission is a

landmark in the efforts to strengthen the third layer of the government at
the sub-state level. The State Finance Commission should integrate both
plan and non-plan expenditure in the process of resource transference to
local bodies. This would strengthen the role of the state Finance
Commission. This also implies that a proper methodological framework
is necessary for making the transference process transparent and simple
in view of the weak resource/tax base of local bodies.
71

DECENTRALIZATION
Context and Concept

- K.V.Sundaram
Decentralization has been a subject of intensive debate
since the 1970's, when the orientation and structure of development
planning changed from growth to redistribution with growth, with the
accompanying objectives of increasing the productivity and incomes of all
segments of society, providing the basic minimum needs to the
population, raising the living standards of the poor and ensuring
sustainable development of earth's natur
al resources. According to Prof.
Lakdawala, "The logic of decentralization is so powerful that it has been
almost universally accepted. It is now a well-organized doctrine that
since local res
ources are to be harnessed, local needs to be consulted, and local
knowledge is needed, a large degree of decentralization is essential for
the success of developmental efforts. This is especially so for those
developmental efforts which aim at transforming the lives of the people or
where the masses are involved".1
Many governments in the Third World countries have
increasingly adopted decentralization policies and programmes in recent
times particularly during the last decade2. These have been informed by
varying degrees and methods of public participation. These experiments
have been diverse.
Shifts in the Context of Decentralization
Decentralization, like development, has been shifting its
emphases in the Third World Countries during the last four decades.2
These shifts in emphases are, by and large, linked with the contexts in
which they figured as a public policy. At least four major shifts are
discernible.
First, the period from the mid - 1950s to the early 1960s
was a time which was characterised by the establishment or
strengthening of local governments in a number of countries. Many
leading ideas on local governments emerged during this period. The
seminal writings of Hicks3 and Maddick4 exemplify this trend. They dwell
at length on the advantages and disadvantages of decentralized systems
of government, the various forms which they may take and their
organization and management. The second marks the period from the
early 1970s to early 1980s, when many nation-states in Asia and Africa

72

attained independence and were consolidating their power and authority.

At this stage, the emphasis shifted to the role of decentralization as a
means of national development and for achieving a variety of
development objectives, ranging from popular participation to better
management of rural development and maintenance of national unity.
This period also marks the Third Development Decade of the UN, when
the meaning of development came to be questioned and ideas of growth
with equity of redistribution emerged, along with rural development
programmes emphasizing poverty alleviation, basic needs, employment
and quality of life. These trends increased the complexities of planning
and administration of the multitude of central government departments
and specialized agencies that had to take on considerably added
functions to bolster and manage the new programmes with their thrust on
specific areas and target groups. Now planning and development
administration had to be organized through various layers of territorial
space, extending from the centre through the state/region, district, subdistrict, field units of central ministries, local government and para-statal
bodies. Also, such planning and development had to be rendered
increasingly relevant and specific to the requirements of the respective
areas/administrative units and the people for whom the development
benefits were intended. This led to the idea of the two-way process in
planning- top-down and bottom-up or multi-level planning,5 which came
to be recognized as crucial for orderly planning and development for any
country. In this context, decentralization acquired its in-depth meanings
as a tool to bring about functional, financial and administrative
decentralisation to the various area levels, with people's participation
providing a critical and meaningful input. This marks the third stage. By
any standards of evaluation, this third stage in the decentralization
concept is the most significant and has placed development
administration and management in its true context of function - sharing
and capacity-building for territorial management and development
administration. During this stage of evaluation of the concept, the
imperative for decentralization has been interpreted as stemming from
three converging forces :
i)
ii)
iii)

Disillusionment with the result of central planning and control of

development activities;
The implicit need for participatory management of development
programmes to conform to the "growth with equity" strategy of the
1970s; and
The realization that, with expansion of government activities and
resulting complexity, it is difficult to plan and administer all
development activities from the centre.6

A concomitant realization during all these shifts in emphasis

involving changes is the central idea that these changes are not "just
technical and administrative; they are political. They involve a transfer of
73

power from the groups who dominate the Centre to those who have
control at the local level". (Griffing, 1981).7
Present Context and Imperatives
The evolution of the decentralization concept brings us to
the present context. This is in the 1990's and in this fourth stage the
imperative for decentralization has emerged in a different context - to
afford the best chance for survival in a crisis-ridden situation. The crisis
referred to here is "the debt crisis" being faced by a number of Third
World countries today, particularly most of the Africa countries during the
1970s and 1980s. To cope with the crisis, several of these countries are
involved in structural adjustment programmes, which are based on a
resurgence of neo-classical macro-economic theories, under the
guidance of the World Bank. Structural adjustment often involves a
severe cutback in services to rural people. The spiral of economic
decline which has led to the crisis situation has, in itself, created the
preconditions for increased local initiatives. The governments, either by
choice or necessity, are unable to provide adequate development
services and the local people now cannot wholly depend on the State to
provide them with sufficient means to improve their quality of life. What is
needed is, therefore, a "self-reliant approach", in which local initiatives
must lead development efforts. It depends on decentralization and
devolution of the structure of government, education and sensitization of
local communities to decide their own development priorities and to
mobilize the resources necessary towards the solution of their own
development
problems.
Besides the debt crisis, there are three other imperative
which have rendered the concept of decentralization very relevant to the
developing countries today. Since the mid-80's, the "environmental
crisis" has surfaced as an important concern, and "sustainable
development" has emerged as the strategy appropriate to all countries to
arrest the rapid depletion of global natural resources. This needs to be
approached in a decentralized manner. At the macro-level, this class for
a substantive and extensive analysis of (a) the implications of various
macro-economic, trade and sectoral policies for management of the
natural resource base, and (b) alternative policy options that explicitly
take into account the resource constraints of the most vulnerable
economic groups in society.
At the meso-level, it calls for the
operationalization of regional, economic development-cum-environmental
planning. At the micro-level, it calls for eco-development planning with
participatory action.8
Currently many countries in Africa and Asia are engaged in
restructuring and re-inventing their governments. The challenge is to find
74

the proper balance between centralized and decentralized arrangements

and to link them in ways that promote development most effectively. The
optimal mix is not easily determined. In India, the government has
recently passed a bold legislation, conferring constitutional status on the
local bodies and following this, the Panchayati Raj bodies are being
revived. The subjects of decentralization and district and local planning
are once again under intensive discussion in all states in the country.
Yet another historical event, which has contributed to a
favourable climate for decentralization is the collapse of the centrally
planned regimes of Eastern Europe. The UN Human Development
Report (1993) observes that "with free enterprise winning out over central
planning and the courageous voices of democracy quieting the terrors of
authoritarianism, people everywhere are asserting their right to determine
their own destiny". It seems to have proved that highly centralized
methods are manifestly ineffective, especially in implementing local
development programmes.
The above four imperative have undoubtedly increased the
awareness and the need for operationalizing decentralized multilevel
planning in many part of the world.
Decentralization and its Variants
The dictionary meaning of decentralization as "The process
of transferring the functions from the Central Government to the local
units" 9 masks the many nuances associated with this term. Even the
definition contained in the Encyclopaedia of Social Sciences10 that
decentralization denotes "the transference of authority, legislative, judicial
or administrative from a higher level of government to a lower level"
does not capture all the essential features of decentralization. The basic
idea of decentralization is sharing the power of decision-making with
lower levels in the organization. But this power can be shared within the
system at a lower level or by creating new mechanisms in the system.
Power can also be shared with outside organizations or agencies.11
Depending on the extent and the means by which power can be shared
with the lower levels, Rondinelli et at.12 Have recognized the following
types:
i)
ii)
iii)
iv)

Deconcentration,
Delegation
Devolution, and
Privatization

75

Deconcentration
Literally it means "breaking the bulk" into smaller parts. In
the sense in which it is used in the development context, it involves the
redistribution of administrative responsibilities within the central
government by shifting the work load from a central government ministry
or agency headquarters to its own field offices, without transferring to
them the power to make decisions or exercise discretion.
Deconcentration
is
also
sometimes
called
"Administrative
Decentralization".
It is really the transfer of some administrative
responsibilities from the central government to the regional, zonal and
district level government offices (geographic decentralization), retaining
all powers of control and authority with the centre.
Deconcentration implies limited transfer of central government
powers, functions and resources to its field units.
Deconcentration in local administration may be of two
types: Integrated and Unintegrated.
Integrated
Local
Administration
is
a
form
of
deconcentration, in which the field staff of central ministries work within a
local jurisdiction under the supervision or direction of a chief executive of
that jurisdiction, who is appointed by and is responsible to the central
government. In one form of integrated provincial administration in East
Africa, for instance, the Province Commissioner has the power to
supervise and coordinate the work of various ministry staff working within
the province. Although the field staff may be hired, paid, trained,
promoted, and transferred by central ministry officials, the field officers
act as technical staff to the Province Commissioner and are accountable
to him for the efficient performance of their duties within the province.
Unintegrated Local Administration is an arrangement,
wherein the field staff of central ministries and administrative staff of local
jurisdictions operate independently of each other. Both sets of officials
are responsible to central authorities but they have little or no formal
power over each other. Each technical officer is responsible to his own
ministry headquarters in the national capital and the administrative staffs
of the local jurisdictions are supervised by the jurisdiction's chief
executive, who has little or no control over the central ministry personnel.
Coordination takes place informally, if at all, and each technical officer
operates in accordance with the guidelines prepared by supervisors in
the national capital.

76

Delegation
It is assigning some tasks to the lower level for
administrative convenience. It implies that the central government
creates or transfers to an agency or administrative level certain specified
functions and duties, which the latter has broad discretion to carry out.
The agencies to which powers and functions are delegated may or may
not be under the direct control of the central government, but the ultimate
responsibility for these functions rests with the central government and,
as such, indirect control is implied in "delegation".
To illustrate what delegation of authority really means, one
may quote the advice given by a district collector in British
India to his sub-divisional officers. "This is your job. These
are the lines on which I want it to be run. Now go and run it.
If you make a really serious mistake, I shall have to over-rule
you. Otherwise I shall not interfere. If you want advice, I am
here to give it. If you want a definite order, you are free to
ask for it. But if you make a habit of wanting either, you will
be of very little use to us."
Devolution
This involves creating or strengthening independent
levels or units of government through transfer of functions and
authority from the central government. In this case, the local units
of government to which functions and authority are devolved would
be mostly autonomous, with the central authority only exercising
indirect, supervisory control over them. For instance, in the context
of Nepal, the transfer of authority effected from the central
government (HMG/N) to the District and Village Development
Committees (VDC) is a case of devolution. Devolution, in fact,
implies political decentralization, i.e decentralization of power to a
political body such as sub-national legislature. In India, the state
governments, which have their own legislatures and have defined
powers and responsibilities under the Constitution, are an example
of this kind.
Local units, which are conferred, through devolution,
wide functions, powers and responsibilities are said to enjoy "Local
Autonomy". By "local autonomy" is meant the ability of local
communities to govern and serve themselves, to determine their
own future, and - in practice as well as in law- to initiate, integrate
and take decisions and actions, with a minimum of outside
direction, approval, help or other forms of intervention (particularly
by central authorities).
77

Devolution implies a situation in which lower ranking

units acquire greater autonomy in respect of certain
defined functions, including decision-making authority.
Devolution of functions, powers and responsibilities is
normally effected through legislation. For example, in the context of
Nepal, the District and Village Development Committees enjoy devolution
of certain functions, powers and responsibilities through a legislation Decentralization Act, 1982.
It should also be noted that devolution is a form of
decentralization in which the people's participation is maximized and their
say in the decision-making powers is quite important.
The authority handed over to the Local Development
Committee through devolution can be taken back only
after making amendments in the law.
Privatization
This is another form of decentralization, in which the
government transfers some responsibility or public functions to voluntary,
private or non-governmental organizations. Voluntary organizations may
include trade and industrial associations, professional groups,
cooperatives, etc. Sometimes, the act of the government in allowing
certain functions to be performed by private enterprises may also come
under the scope of privatization.
Privatization is a form of decentralization in which the
government may transfer functions to voluntary
organizations or allow certain functions to be performed
by private enterprises.
Delegation of Authority to Public Corporations and Regional
Development Authorities
Between the two extremes of "Deconcentration" and
"Devolution" of power, there are various degrees of delegation of
functions and various mixes of shared responsibility between the state
and organizations set up to perform specified functions. These may be in
the form of parastatals, public corporations or regional/area development
authorities. This is a way to short-circuit the normal government
machinery and endow certain organizations with specified functions, so
as to enable them to function with drive, coherence and authority to plan
78

and pursue economic development. It is felt that this arrangement has

distinct advantages over entrusting such functions to regular government
agencies. Their executives could make decisions more expeditiously,
would be free from bureaucratic red tape and political maneuvering
characteristic of administrative agencies and could operate outside of the
sometimes tight constraints imposed by legal regulations and civil service
requirements. Moreover, a separate and usually higher-level salary
scale, the prestige of a corporate image and the ability to use business
procedures within these special authorities would attract the most highly
qualified personnel and motivate them toward better performance. The
MUDA Irrigation Authority in Malaysia, the Command Area Development
Authorities and Small Farmers Development Agencies set up in India are
examples of such organizations.
Decentralization : Its Real Meaning
Distinct from the above four expressions, the term
Decentralization is an arching concept or an "umbrella term," which defies
any single attempt at definition or interpretation.
Decentralization literally means the action or fact of
reducing or undoing "centralization" or "concentration". In the political
sense, complete or total decentralization would mean "the withering away
of the state".
However, in the context in which the term is used in the
development literature, it refers to the transfer of authority to plan, make
decisions and manage public functions from the national level to any
organization or agency at the sub-national level. Thus the sub-national
area level, to which decentralization is effected, will have a particular
"role" in the development process. This would mean assigning both
"powers and responsibilities" for its activities. The power assigned may
also include the power to raise local resources. When powers and
responsibilities fully decentralized to the sub-national level, the latter will
have also control over the determination of their development goals and
targets.
Decentralization refers to a situation in which lowerranking decision-units acquire all powers and
responsibilities and have also control over the
determination of their goals and targets.
True decentralization implies three things :
1.

Assigning of responsibilities (i.e. functions) with matching

powers and requisite finances.
79

2.

Rendering the decentralized level fully accountable for its

activities.

3.

Ensuring participation of the local population in planning

and implementation.

Thus a clear role with adequate powers and finances,

accountability (to the higher levels of administration as well as to the
public) and public participation constitute the hallmarks of
decentralization. The concept of autonomy is an important component of
decentralization and that for autonomy to be meaningful, it should take
place along three dimensions - administration, finance and delivery
system.
To increase our clarity of understanding, the alternative
forms of decentralization, it should be noted that each form of
decentralization has different implications for institutional arrangements,
the degree of transfer of authority and power, local citizen participation,
preconditions for successful implementation and advantages or benefits
for the political system. In reality, although there are differences among
the various forms of decentralization, they are not mutually exclusive. All
governments consist of some combination of these forms, with the
amount of authority transferred to decentralized units differing from
country to country.
Dimensions of Decentralization
These are four major dimensions of decentralization, viz (I)
Functional, (ii) Financial, (iii) Administrative and (iv) Political. We may
now devote some attention to these dimensions.
Functional Decentralization
The question of what types of functions are to be
decentralized to the different sub-national levels is an important issue in
decentralized planning. This cannot be done in a mechanistic omnibus
manner by "listing" subjects in a schedule in the concerned enactment.
This is because the "functions" have to be matched with the "capabilities"
available and the "powers" proposed to be delegated by the government
departments. The line ministries/departments do not give up the powers
easily. The experience of many developing countries reveals that the
lack of adequate capability at the lower levels to take on all new functions
and responsibilities "in one go" is a serious constraint. The requisite
capabilities to govern take a long time to develop.
It is, therefore,
apparent that the devolution of functions will have to proceed in steps,
matching the building up of capabilities.
80

Government institutions at the sub-national levels of the

central legislature (in case of unitary states) or the state legislature ( in a
federal set-up) can exercise only those powers and functions that are
specifically assigned or delegated to them. Depending upon their nature
and instrumentality, the powers and functions may be said to fall under
three categories.13
i)

Governmental and departmental functions which arise out of

executive orders of government and are not covered by statues. A
good part of plan schemes, welfare pensions and scholarships and
allowances will come under this category;

ii)

Powers and functions entrusted by the statute and its subordinate

legislation, creating the local government institutions; and

iii)

Powers and functions assigned and delegated to local government

institutions (different powers being delegated to different local
government institutions) in the subject matter enactments and their
subordinate legislation.

While effecting functional decentralization, two issues must

be considered: (i) The type of functional activities to be decentralized;
and (ii) The nature of powers over each activity being decentralized.
While listing the functional divisions of government activity
in any enactment or subordinate legislation or delegation through
executive orders of the government, it is necessary to be very clear and
specific. This is because, it is usual for any one functional (sectoral)
activity to be divided between national and sub-national levels of
government. Thus to take the example of education, one needs to
consider different types of education, i.e. primary, secondary, tertiary,
vocational, adult, etc., and different types of functions with regard to each
kind of service such as day-to-day administration, location of new
schools, curriculum design, teacher training and so on.14
What powers over each activity are decentralized is a
relevant question, because those powers will determine the effective
control or authority which sub-national levels of government or
administration have over those functional activities. The powers that may
be decentralized fall into three main categories : policy-making powers,
financial powers and powers over personnel matters. Each of these
powers can, in turn, be sub-divided. Thus policy-making powers are subdivided into law-making and executive powers, financial powers into
those concerning revenue and expenditure (each of which is further subdivided) and personnel powers into those relating to conditions of service,
establishments, appointments and promotions, transfers and direction
and discipline (many of which could also be further sub-divided). Diana
81

Conyers has summarized, the main types of power which may be

decentralized with regard to any particular activity15.
The demarcation/division of planning and plan related
functions between the national and sub-national levels is always a tricky
problems. While it is ultimately a political/bureaucratic decision, there
could be several criteria on which a rational decision could be arrived at.
Some of these criteria are :
i)

Selective closure : Territory and Functions have close affinities.

Each particular function has a certain "territorial reach". Sudhir
16
Wanmali's field surveys in Andhra Pradesh
have shown that
under Indian conditions, economic distance is an important factor.
Thus a primary school commands a service area of about 25 sq.
kms, a secondary high school about 120 sq. kms., a branch post
office about 50 sq. kms. And so on in the rural areas. Thus based
on "access norms", various functions could be allocated along
spatial levels;

ii)

Location of schemes/investments and the geographical

spread of beneficiaries : This is particularly relevant in assigning
territorial control over specific poverty alleviation programmes,
where the geographical spread of beneficiaries is an important
consideration;

iii)

Divisibility/indivisibility of a scheme or activity : Some

schemes require a unified control by an authority at a particular
spatial level, e.g. Command Area Development activities. Splitting
such functions across different spatial levels would cause complex
administrative problems;

iv)

Interdependence
and
complementarily
between
functions/activities : The linkage effects of development demand
that interdependence and complementarily between functions be
taken into account in deciding the allocation of functions to
particular area levels. For example, the improvement in agriculture
in an area depends on complementary developments in irrigation,
rural electrification, roads, transport, banking, service provision
and agro-industries. Integrated development would be greatly
facilitated, if complementary functions could be controlled at the
same spatial level; and

v)

Economics of scale must also be recognized as one of the criteria.

For instance, economies of scale may direct certain functions to
the sphere of a higher spatial level, e.g. Large-scale and strategic
industries the responsibility of the centre; small-scale industries,
the responsibility of the regions and so on.
82

In many Indian states, the criteria, by and large, for

determining whether a particular plan scheme belongs to the state sector
or the district sector are : (a) the location of the scheme, and (b) the area
intended to be benefited by the scheme. Generally speaking, the
schemes which are intended to promote the interests of the people of the
state as a whole are classified as state-sector schemes. The schemes
which are mainly for the benefit of the people of a particular district are
identified as the district-sector schemes. In actual practice, however, the
application of such criteria may present some problems, as benefits of
certain schemes may cut across district boundaries. In such cases, the
proportion of the benefit to the district in relation to the state is taken into
account for deciding its classification.
Financial Decentralization
Financial devolution and the powers to mobilize local
resources are very critical aspects of decentralization. As an FAO
document puts it, "Planning at any level without necessary financial
resources and authority is an exercise in futility. In all countries, including
the federal ones, most financial resources are mobilized by the central
government, which then distributes them to the lower levels. In a federal
structure, the states have a right to certain shares in these resources and
the Constitution provides for the periodic revision of Centre-State
financial relations. In unitary systems, the financial resources of the
provinces and the lower levels are received through the process of
devolution. Multilevel planning processes are facilitated to the extent that
the magnitude and rules for such devolution are clearly laid down and
periodically revised".17
Local governments derive revenues from two main sources :
i)

External sources, which are not within the authoritative

jurisdiction of the local government. Examples of this kind
are the central government grants and loans and credits
provided by domestic lending institutions;

ii)

Local sources, which include:

a)
b)
c)

Taxation, i.e. those taxes imposed by the local

bodies pursuant to the provisions contained in the
appropriate legislation;
Rentals, charges and fees; and
Earnings from public utilities or public enterprises.

83

Based on various studies conducted in different developing

countries, one may generalize that not more than 35 to 40 per cent of
local body financial resources come from local sources and much of the
resources of local bodies are derived from national government
assistance through devolution.18 It is also apparent from many studies
that in spite of wide taxation powers available to local bodies, in a number
of countries, the same have not been utilized fully, with the result that the
inadequacy of local finances is a nagging problem with all local bodies.
For this reason, most local authorities have failed to render effectively the
services they are supposed to provide.
Therefore, the mobilization of larger internal resources to
augment the financial capability of the local bodies is a crucial issue.
Such mobilization does not merely mean the raising of more taxes or
their rates. Plugging of tax evasion and arrears, and curbing waste and
inefficiency would also increase the flow of resources. Besides the
internal mobilization of resources, we would also consider the transfer of
resources from the centre.
This, in turn, raises many complicated issues of revenue
sharing as well as the question of rationality in the transfer of
development resources from the national to the sub-national levels.
For deciding the sharing of revenue between the centre and
the sub-national levels, different countries have adopted their own
procedures. In India, this is decided by a statutorily appointed Finance
Commission for the transfer of finances from the Centre to the States.
Recently, a similar device (i.e. a Local Finance Commission) has been
stipulated for the transfer of finance from the Centre to the States.
Recently, a similar device (i.e. a Local Finance Commission) has been
stipulated for the transfer of financial resources from the states to the
districts. For the disaggregation of development plan funds from the
state to the districts and below. The major objectives are : (a) to nourish
the grassroots planning and decision-making, and (b) to achieve a fair
degree of regional equity in the allocation of development finance and the
provision of services. Governments adopt various criteria for the
allocation of development funds from the centre to the sub-national
levels. Theoretically, the following socio-economic considerations hold
good :
i)
ii)
iii)
iv)
v)
vi)

Area;
Population size;
The degree of relative backwardness;
The measure of tax effort;
Special locational (physical or environmental) and social
characteristics; and
Commitment to major national schemes.
84

Each of the above factors may be given a special weight

and a formula may be devised to calculate the contribution to each subnational entity (e.g. district). In this method, the degree of relative
backwardness is a crucial factor. It is used to rank the sub-national units,
say, in terms of income per capita, services per capita and government
expenditure per capita. Many other factors could be incorporated in this
measure, such as infrastructural facilities, the rate of unemployment and
nutritional status. The underlying argument is that an area, which is
relatively more backward, should receive relatively higher grants both
from equity and efficiency considerations. The argument about efficiency
is that when a backward area (particularly if it is potentially rich) is enable
to grow and develop and on its own feet, it future contribution to the
national economy may more than outweigh the subsidy originally paid for
its rescue.
In India, some state governments have adopted a rigorous
formula approach. Broadly, the method consists of dividing the total plan
outlay into "divisible" and "indivisible" pools, which indicate the resources
available for the district-sector schemes and the state-sector schemes
respectively. The "divisible pool" of resources is then distributed among
the districts on the basis of a formula (incorporating various criteria)
adopted by the State government. As an illustration, the criteria and the
weightages given in the disaggregation formula for four Indian states is
shown in Table 1.1.
At one time, Sri Lanka influenced by political considerations
adopted the "equal-weighting approach" for making districtwise
allocations, which means that the spatial disparities in development were
ignored. In many African countries, no systematic or sophisticated
criteria are being adopted for the allocation of central grants. The
approach is adhoc. Among those countries which follow some
procedures, that of Ghana may be cited. In the criteria for the allocation
of central grants, called "ceded revenue" in Ghana, three variable, viz.
Equality, population and development status of the districts, have been
given some weight. A certain proportion of the funds (which is not a
constant, but varies from year to year) is divided among the districts on
an equal sharing basis. The remaining funds are shared by taking
population and development status into account in the proportion of 3:2.
The criterion of development status is related to deprivation or
backwardness. For example, the presence of settlements qualifying as
towns is regarded as the indicator of "developedness". Using such ruleof-the-thumb methods, the level of backwardness of the districts is
measured.19

85

Table 1.1 : India - Formula for Disaggregation of Plan Funds

to the District Level
(Weightages %)
States
Criteria

Maharashtra

Gujarat

Karna- Uttar
taka
Pradesh

60.0
5.0

40.0@
-

50.0
-

50.0
-

15.0

2.5

5.0

2.5

2.5

10.0

5.0

10.0

5.0

5.0

4.0
5.0
5.0
-

10.0
5.0
10.0
-

5.0
5.0
2.5
2.5

5.0

5.0

5.0

5.0

5.0

2.5
2.5

5.0

1.

Population
a) Total Population
b) Urban Population

2.

Backwardness of Weaker Sections

a) Population of Scheduled Castes 5.0
and Scheduled Tribes
b) Small and Marginal Farmers and Population
of
Agricultural
Labourers

3.

a)
b)
c)
d)
e)
f)

g)
h)
4.
5.

6.

Backwardness in respect of
Agriculture Production/value of
output
Irrigation
Industrial Output
Communications
Drinking Water
Financial
infrastructure
as
measured by the size of population
served by each Commercial and
Cooperative Bank
Medical and health facilities (No. of
hospital beds)
Power Supply

Backwardness in respect of the targets of other selected Minimum

needs
Special Problems
a) Drought Prone Area
3.0
b) Coastal Areas
1.5
c) Forest Areas
1.5
Local Tax Effort

86

5.0
5.0

7.

Incidence of unemployment as measured by the proportion of

registrants at the Employment
Exchange

5.0

8.

Unallocated amount for meeting

Special Problems

5.0

9.

Incentive Provision

5.0

Total

100.0

100.0

100.0

100.0

@ For computing the population for the purpose of the formula in

Gujarat, only rural population and population of towns with less than
50,000 people were taken into account.
Source: Govt. of India, Planning Commission, "Report of the
Working Group on District Planning", May 1984.
In India, the states generally earmark funds meant for
district schemes. But mere earmarking of funds for district schemes does
not automatically confer autonomy on the district planning bodies for
utilizing these funds. This is because most of the funds allocated to the
districts may be pre-empted for various departmental schemes, the
decision-making for which rests with the departmental heads at the state
level. Therefore, unless some "un-tied funds" are kept at the disposal of
the district planning will be only in name. This constraint has been
sought to be tackled to some extent in one of the states, Gujarat, by
dividing the district outlays into three categories, viz.:
1)
2)
3)

Eighty per cent of the provision is retained for normal schemes to

be proposed by the sectorial departments;
Fifteen per cent of the outlay is provided for schemes suggested
by the district planning bodies in response to local needs and
priorities and to exploit local potential; and
The remaining 5 per cent is earmarked as incentive grants against
which additional funds are to be raised at the district level.

What this means is that 20 per cent of the funds is provided

as "discretionary outlay" to the local bodies and the remaining 80 per cent
of the outlay is meant to be spent by the departments, over which the
local bodies have little or no say.
Thus the above formula approach seeks to compromise the
interests of departmental bureaucrats and the local planning authority.
Ideally if the district planning has to manifest itself in its full meaning, all
funds flowing into the district should be pooled together and placed at the
87

disposal of the district planning authority. This does not happen, because
the departments are not prepared to give up their hold on financial
resources. The excuse usually advanced for this is that the districts do
not have an adequate planning capability for formulating a systematic
district plan and utilizing the funds rationally and in an accountable
manner.
In the pattern of district plan outlays as evolved by Gujarat
state in India, it may be noted that the provision of a 20 per cent
discretionary outlay (including 5 per cent incentive outlay), which the
district planning bodies have the freedom to use, has generated a lot of
enthusiasm and is said to have resulted in the formulation of schemes of
real local need and interest. But for this freedom, works like the provision
of some missing links in development works would not have been taken
up. The experiment of incentive outlay has also been very well received
and has result in the mobilization of sizable local resources, in the shape
of a matching contribution by the local population. The incentive outlay
requires 50 per cent or 25 per cent matching contribution from the
districts depending upon the pattern prescribed, which is based on the
relative backwardness of the area. While the relatively advanced areas
have to provide a matching contribution of 50 per cent, certain categories
of relatively backward areas are required to contribute only 25 per cent.
Thus differential incentives have been provided for according to the
degree of backwardness.
From the above country experiments, we get many useful
clues about financial decentralization methods. We also understand that
in any scheme of financial decentralization, adequate incentives must be
provided for, to encourage the local mobilization of resources. This
would lead to a sense of participation among the people and increase
their motivation to help themselves as far as possible and to achieve a
certain measure of self-reliance. An FAO document says that "the local
mobilization processes in a community are generated spontaneously.
Catalytic intervention of some sort is often a crucial initial step. One of
the ways of motivating a community is to incorporate an incentive
element in the resource transfer formula itself, such as a performance
and efficiency criterion. Alternatively, a small part of the transfer could be
earmarked for a matching contribution by the sub-national community,
(i.e. an incentive grant)".20
It should be noted that devoid of a substantial element of
local resource mobilization and with reliance only on the central financial
flows, local development becomes wholly dependent on a whimsical
exercise by the state in the deconcentration of the national development
budget to the local level. Consequently, the local bodies are throttled by
barely or totally insufficient funds, with which to meet their local felt needs
and tackle all their local problems. Unfortunately, this is the prevailing
state of affairs in the local bodies of many Third World countries.
88

Administrative Decentralization or Deconcentration

Administrative decentralization or "Deconcentration" as it is
known, is considered to be a watered-down surrogate of true
decentralization. It encompasses a wide range of structural, planning,
personnel, procedural and managerial issues, which are all administrative
in nature. Administrative decentralization is certainly a necessary
component of decentralization for any country, but not sufficient.
Administrative
decentralization
essentially
means
deconcentration of functions and some powers from the headquarters of
the national government departments and agencies to their respective
field offices. It may also mean divesting of some responsibilities to
corporate institutions and para-statals. Through such means, the centre
"unloads" a part of its administrative burden at the top. The "command",
however, is retained at the top. The deconcentrated administrative
institutions, which owe their allegiance to their vertical hierarchies, work
within top-down lines of command.
First and foremost, administrative decentralization means
taking a range of administrative actions to partly off-load governmental
activities. These include:
a)

Setting up offices at the regional and various local levels, so

as to improve the "reach" and "access" of the governmental
administration and move closer to the people;

b)

Designating the decentralized subjects or functions for each

of the spatial levels in the hierarchy;

c)

Making necessary delegation of powers;

d)

Assigning adequate finances;

e)

Determining appropriate financial powers for ensuring

accountability, laying down budgetary procedures for
framing the budget, for financial release, accounting and
reappropriation of funds;

f)

Posting
of adequately qualified
deputation or fresh recruitment;

g)

Establishing work procedures and framing departmental

rules and regulations for coordinated functioning;

h)

Providing

technical

guidelines

to

personnel

field

through

officers

and
89

establishing a time-bound programme of activities to nest

into the national planning process;
i)

Taking suitable steps for capability building among the

personnel through the institution of training, re-training and
refresher programmes;

j)

Instituting a planning process with top-down and bottom-up

procedures meshing into one another; and

k)

Establishing institutional mechanisms for an effective policy

analysis, planning, coordination, monitoring, review and
evaluation.

All the above tasks amount to the building-up of an efficient

"administrative framework", which would have the necessary capabilities
to take over the responsibilities of effectively implementing a
decentralized policy and manage the decentralized development
activities. This means not merely the acquisition of skills by the
bureaucracy and the technocracy, but also gradually developing in them
an attitudinal change and a frame of mind in favour of working with the
people and their representatives. In other words, it means "laying the
ground work" for the more desirable "democratic decentralization". In this
conception, administrative decentralization is seen more in its positive
role as a pace-setter and facilitator of democratic decentralization.
However,
it should not be forgotten that sectoral administrative
decentralization really means, enabling the building up of an insulated,
free-wheeling and isolationistic vertical empire in each sector of activity,
characterized by an excessive "departmentalism" and "ivory tower
attitude", which thwarts all attempts at coordinated and integrated
development. According to Benninger,21 the more "fine again" the pattern
of deconcentration, the more ugly and corrupt will be the face of the
administration. He views administrative decentralization as a process of
extending central control in a more fine-grain pattern through
"supervisory" officials down to "contact" officials in the field. In its
extreme form, it may lead to an excessive bureaucratic control and may
even encourage corruption.
Whatever be the negative aspects of "administrative
decentralization" in the strict sense of this term, it is a necessary
component of decentralization because it enables the various
governmental sectors of activity to descend to the critical spatial levels in
the sub-national hierarchy and provide greater access to the
government's services and delivery systems to a large part of the
population. In many countries in sub-Saharan Africa characterized by
political centralism, the real problem is how to extend the "reach" of the
government to the periphery.
In this context, the question of
90

administrative reforms preceding democratic decentralization does not

arise. By at least decentralizing development administration in ministries,
line agencies and departments, it would be possible to extend the
"reach" and access of the government and capacitate the government
functionaries at the lower levels and expose them to a planning concept,
which can take better note of the local needs, aspirations and problems
and execute jobs with a greater accountability to the people.
Centralization and decentralization may be viewed as the opposite
extremes of a single "continuum", neither of which, by itself, would seem
to be a practicable choice for any government for any substantial period
of
time. It is a question of necessity and degree. The choice of
direction and of pace and extent of decentralization will depend on the
stage of political, economic and social development of the country. One
cannot always argue for the "best". In many African countries, a
graduated change is called for. In this context, "selective administrative
decentralization" viewed as an incremental process holds the key to
development.
Political or Democratic Decentralization
Decentralization, as a concept, reaches its acme of
perfection when the people are drawn into its fold and are empowered.
But when only the elected leaders are drawn into its fold, it is deemed
"partial decentralization". When all sections of the population are enabled
to participate in the local affairs of a community, then decentralization is
said to be "more fine-grained" or total.
Political or democratic decentralization thus signifies the
quest for a participative and community approach and the epithet
"democratic" only reinforces and underlines the democratic values,
purposes and approaches and the style governing it.
The three major components of political or democratic
decentralization are : Local Autonomy, Devolution and Public
Participation.
Local autonomy should be taken to mean the ability of local
communities to govern and serve themselves, to determine their own
future and - in practice as well as law - to initiate, integrate and take
decisions and actions, with a minimum of outside direction, approval, help
of other forms of intervention (particularly by central authorities). It
implies an attitude of assertiveness, self-reliance and confidence that the
local community knows better where its interests lie and how best to
achieve them. But it need not imply self-sufficiency, nor need it mean
autarky.22

91

Local autonomy is primarily sought through "Devolution",

which, as explained earlier, is the transfer of national government
powers, functions and resources to local governments. It is granting
decision-making powers to local authorities and allowing them to take full
responsibility, without reference back to the central government. For
making local autonomy meaningful, devolution should be complemented
by deconcentration and other measures. In devolution, Maddick has
emphasized the legal aspect. According to him, devolution is "The legal
conferring of powers to discharge specified or residual functions upon a
formally constituted local authority.23
According to Uphoff and Esman "local autonomy by itself
provides little leverage for development".24 For development purposes,
the strength of local government units - in terms of salient functions they
perform, the skills and professionalism of local officials, their base of
financial resources, and the effectiveness with which they carry out their
responsibilities - may be much more significant than their legal status as
independent units.
The Balwantrai Committee has made the distinction
between delegation of powers and devolution very clear. The report of
the Study Team states: "It is not infrequently that delegation of powers is
mistaken for decentralization.
The former does not divest the
government of ultimate responsibility for the actions of the authority to
whom power is delegated; this authority is under the control of the
government and is in every way subordinate to it. Decentralization, on
the other hand, is a process, whereby the government divests itself
completely of certain duties and responsibilities and devolves them on to
some other authority."25 Ocampo elaborates on the various ways in
which devolution should enhance the capacities of local governments.26
These are :
a)

Transfer of more programme responsibilities and resource from

the national to the local governments to substantiate the legal
duties and powers conferred upon them;

b)

Broadening the range of the programmes and services under their

control, so that is commensurate with responsibility;

c)

Provision of more productive revenues in order that the fiscal

powers given to them can be effectively made us of and their
dependence on the central government can be reduced; and

d)

Enhancing the local institutional capabilities for policy-making and

administration so that they can effectively exercise their greater
autonomy.
92

Devolution is thus seen as an orderly transfer of authority,

resources and institutional capabilities to local governments. Political
commitment to democratic decentralization is a must, if devolution is to
become a reality. In its absence, most of the things to implement remain
more in law than in practice.
Democratic decentralization is a political ideal and local
government is its institutional form.27 It is premised on advocacies of
ensuring basic freedoms, a more liberal and rational sharing of power,
and the pursuit of improved well-being for the people under a climate of
democratic dispensation. Through democratic decentralization, people
are afforded meaningful participation in the process of governance,
strengthening of democratic institutions to promote a healthy
arrangement of checks and balances, attainment of a certain level of
political maturity and cultivation of democratic consciousness. Thus
democratic decentralization, it must be understood, is more than holding
of elections and tinkering with structures and forms.
The institutional expression of the policy of democratic
decentralization in India is identified with "Panchayati Raj". Till recently,
the whole structure of the Panchayati Raj system did not have a
constitutional backing and it had been left to the whimsicalities of state
governments. This led to the steady erosion of their powers and
functions over a period, and for even the elections to them being
postponed indefinitely, despite formal legislative enactments at the state
level for initially setting them up. An essential step has now been taken
through a constitutional amendment (the 73rd Constitution Amendment,
1993), which envisages the establishment of Panchayati Raj institutions
as unites of local self-government in different states.
Integrating Administrative
Decentralization

Decentralization

with

Democratic

Both administrative and political decentralization, in their

extremes, are not desirable.
The former will lead to excessive
bureaucratic control and corruption and the later to the "withering away of
the state". The conceptual differentiation between the two is, however,
crucial. But in reality, both must been seen in relation to one another. It
should be emphasized in this context that the concept of decentralization
is that of a "continuum", rather than a dichotomy; it is a matter of degree
rather than an alternative. What is needed in any context is an
"appropriate mix" between administrative and political decentralization.
This appropriate mix will depend on the socio-economic and
developmental context of the particular country.
We may illustrate through a diagram how the false
dichotomy of separate "administrative" and "political" decentralization
93

could be integrated. Here we consider a bi-axial system in which

"administrative" and "political" decentralization are at the two ends of the
continuum along with X-axis, and "centralization" and decentralization"
are at the two ends on the Y-axis. Any system has some internal
constraints, which we shall call as "feasibility thresholds". These are
shown in the Figure 1.1.
Centralized
Zone of
Feasibility
Administrative

Political

Decentralized
Fig. 1.1: The Administrative and Democratic Decentralization mix.
The integration of "administrative : and "political"
decentralization is achieved through appropriate institutional structures,
which will link the bureaucracy and the implementing agencies with the
people and their institutions (i.e. local governments and voluntary
agencies). Thus an appropriate model of democratic decentralization
implies the combination of and cooperation between the official
machinery of administration and the non-official leadership and control
through the mechanism of local governments.
Rhetoric and Reality of Decentralization
Decentralization, in its ideal and pristine form, with genuine
decentralization to democratic structures, has not been realized to its
fullest potential, as far as we know, in any part of the globe. The hiatus
between the idea, which is undoubtedly noble, and its implementation or
realization is disturbingly wide. In most countries, what we find is an
extended deconcentration of some administrative functions and powers
with limited local participation . In many African countries, which are
ruled in a non-democratic way with authoritarian structures, sometimes
the bogey of decentralization is raised, but there is hesitancy to extend
local autonomy for the fear that the nation may break up. In many other
countries, in the absence of democratic structures, local governments
lack and effective political power base from which to generate local
control over decision-making. Even in some Asian countries, where
some progress has been made in establishing suitable institutional
mechanisms, the actual decentralization that has been effected is
disappointingly short of expectations.
Further, many developing
countries, which have experimented with democratic decentralization,
have not succeeded in drawing the less privileged sections of the society
94

into its local bodies. Decentralization has only further empowered the
elites and marginalized the poor. Thus there seem to be genuine
limitations to decentralized planning and the people's participation in the
Third World countries. The UN Human Development Report(1993) rightly
remarks, "Many of the most effective forms of decentralization are not
based on the institutions of local government. Some of the most
important local bodies, which can serve as a countervailing power to the
influence of central governments are voluntary associations-including
people's organizations and non
-governmental organizations." It is by
strengthening these organizations at the grassroots levels that
democratic decentralization can truly achieve its ultimate goals.

95

REFERENCES
1.

Lakadawala, D.T., `Panchayati Raj in Karnataka today : Its

National Dimensions, Quoted in Decentralized Planning and
Panchayati Raj (Proceedings of the D.T. Lakdawala Memorial
Symposium), Institute of Social Sciences, New Delhi, and Concept
Publishing Company, New Delhi, 1994.

2.

Conyers, D., `Decentralization of Development - A review of

literature, in Public Administration and Development, 4, 1984.

3.

Hicks, U.K., Development from Below : Local Government and

Finance in Developing Countries of the Commonwealth. Oxford :
Oxford University Press, 1961.

4.

Maddic, 14., Democracy, Decentralization and Development,

Bombay : Asia Publishing House, 1963.

5.

FAO, `Towards Improved Multi-level Planning for Agriculture and

Rural Development in Asia and the Pacific'. Economic and Social
Development, 52, 1984.
See also Sundaram, K.V., `Multi-level Planning, Concepts,
Principles and Application to sectoral development'. In Sundaram,
K.V. et al. (Eds.), Regional Planning and Development (Essays in
honour of R.P. Misra), New Delhi : Heritage, 1985.

6.

Cheema, G.S. and Rondinelli, D.A. (Eds.). Decentralization and

Development : Policy Implementation in Developing Countries,
Beverley Hill : Sage, 1983.

7.

Griffin, K., "Economic Development in a Changing World," World

Development 9(3) : 225, 1981.

8.

Sundaram, K.V., `The Emerging New Development Paradigm :

Issues, Considerations and Research Agenda' in Amitava
Mukherjee
and V.K.Agnihotri
(Eds), Environment
and
Development - Views from the East and the West Concept, New
Delhi, 1994.

9.

See Chambers Twentieth Century Dictionary.

10.

Leonard D. White, `Decentralization' Encyclopaedia of Social

Sciences, Vol. 5, New York, Macmillan1959.

11.

Meenakshi Sundaram, S.S., Decentralization in Developing

Countries, Concept Publishing Company, New Delhi, 1994, p. 11.
96

12.

Rondinelli, D.A., J.R. Nellis and G.S. Cheema (1984)

Decentralization in Developing Countries, Washington, World
Bank.

13.

Ramachandran, V., `Report on the measures to be taken for

democratic decentralization at the district and lower levels', Vol. I,
Governmentof Kerala, Trivandrun, July 1988.

14.

Conyers, Diana "Decentralization : A framework for discussion", in

Decentralization, Local Government Institutions and Resource
Mobilization (Ed.) Hasnat Abdul Hye, Bangladesh Academy for
rural Development, Comilla, Bangladesh, 1985.

15.

Conyers, Diana, Ibid.

16.

Sudhir, Wanmali, Geography of a Rural Service System in India,

B.R. Publishing Corporation, Delhi, 1987.

17.

`Toward Improved multilevel planning for agricultural and rural

development in Asia and the Pacific'- FAO Economic and Social
Development Paper 52, Food and Agriculture Organization of the
United Nations, Rome, 1990, p. 66.

18.

Local finance studies in the Philippines show that 60-65 per cent of
the total revenues of most local governments come from external
or national government sources notably from internal revenue
allotments; Only 35 to 40 per cent represent revenues coming
from local sources. See Raul P. deGuzman and Perfecto L.
Padilla, `Decentralization, Local Government Institutions and
Resource Mobilization - The Phillippines Experience' in Hasnat
Abdul Hye, `Decentralization, Local Government Institutions and
Resource Mobilization', Bangladesh Academy for Rural
Development, Comilla, Bangladesh, 1985.

19.

Sundaram, K.V., `Decentralizationof Agricultural Planning for

Ghana', January 1992, Report prepared for the Food and
Agriculture Organization of the United Nations and the
Government of Ghana, Ministry of Agriculture (mimeographed).

20.

FAO Economic and Social Development Paper No. 52, `Toward

Improved multilevel planning for agricultural and rural development
in Asia and the pacific', FAO/UN, Rome 1990.

21.

Benninger, Christopher C., `Institutional Strategies for

Decentralization', in The Administr
ator, Vol. XXVI, No. 3, JulySep., 1991.
97

22.

Ocampo, Romeo B., "Toward more authentic Local Autonomy Premises and Proposals for refom," in `Papers on Decentralization
and Local Autonomy' - Local Government Centre, College of
Public Administration, Manila (mimeographed).

23.

Maddic, H., Democracy, Decentralization and Development,

Bombay : Asia Publishing House, 1966, p. 23.

24.

Norman Uphoff and Milton J. Esman : `Local Organization for

Rural Development in Asia', Centre for International Studies,
Cornell University, Ithaca, 1974.

25.

Report of the Team for the Study of Community Projects and

National Extension Service, Committee on Plan Projects, New
Delhi, Vol. 1, 1957.

26.

Ocampo, Romeo B., Ibid.

27.

Iqbal Narain, `The idea of democratic decentralization', Indian

Journal of Political Science,Vol. XXI, No. 2.

Source : K.V.Sundaram, Decentralised Multi-level Planning

Principles & Practice : Concept Publishing House, 1997, New Delhi.

98

DECENTRALISED PLANNING : AN OVERVIEW OF

EXPERIENCE AND PROSPECTS IN INDIA
I.

THE CONTEXT:

C.H.HANUMANTHA RAO

Decentralisation of the planning process has become, of

late, a matter of world-wide concern, whether in socialist or mixed
economics. Decentralisation through the involvement of local level
representative institutions in the formulation of plans for development as
well as their implementation is being advocated in the interest of efficient
utilisation or resources and for ensuring more equitable sharing of
benefits from development.
In the case of public enterprises,
decentralisation or de-bureaucratisation is advocated for securing
autonomy for the management in respect of decisions on important
matters relating to investment, product-mix, pricing, wages and labour
relations, with a view to ensuring result-oriented performance.
This general
concern for decentralisation has been
preceded by long periods of planning when fairly high rates of investment
and high levels of development have been achieved particularly in
respect of physical infrastructure, e.g., power, irrigation, roads and
communications etc. In socialist countries, basic change in property
relationships were brought about before the start of the planning process
itself besides achieving a high level of social development, e.g.,
education, health and recreation facilities, etc. over the plan period. In
India, however, the pace of structural changes and social development
has been slow, although certain institutional measures undertaken such
as abolition of intermediaries in land, ceilings on the ownership of land
holdings, nationalisation and development of major financial institutions
did contribute of opening up the opportunities for development for wider
sections of population.
The present concern for decentralisation should thus be
seen in the context of the slow rate of benefits flowing from the
infrastructure already build up as indicated by the slow growth of
productivity and, in the case of India, insufficient percolation of benefits
to the poor and socially disadvantaged sections, despite the proliferation
of several poverty alleviation programmes in the recent period.
Improvements in productivity through speedy absorption of modern
technology as well as better allocation and utilisation of the available
resources, and greater impact of such productivity improvements on the
living conditions of the weaker sections of population are sought to be
achieved through decentralised planning. It is also recognised that
certain pre-requisites for decentralised development such as education,
general awareness, technical and organisational capabilities are found in
greater measure now than in the early years of planning.
99

Decentralisation in decision-making is expected to be

limited to certain sectors where the concerned unit of planning has a
comparative advantage. These are generally activities and investments
which are located in, and the flow benefits largely confined to the area
concerned. Therefore, the process of decentralisation envisaged is not
likely to weaken central planning, much less to obviate the need for it.
Indeed, an intelligent process of decentralisation may contribute to
strengthening the planning process in general by relieving the higher
levels of planning from detailed decisions-making and overseeing and
thus strengthening their capabilities in taking overall allocative decisions
including those having a bearing on planning and development at the
lower levels.
II.

THE ISSUES :

In this paper, we are concerned with decentralised planning

essentially at the sub-state level, i.e., regional, district, block and village
levels, although the focus of attention will be decentralised planning at
the district level. In India the concern for decentralised planning is as old
as planning itself. The first Five Year Plan was as clear and eloquent as
any latest official document on this subject. The following lines from the
First Plan document bear this out:
"A democracy working for social ends has to base itself the
willing assent of the people and not the coercive power of to statetheir
own views about their needs and difficulties and the correct solutions
must be elicited and given the fullest weight in making the plans. In the
execution of which they will be called upon to assist Mans have,
therefore, to be devised to bring the people into association both at the
stage of formulation of the plans and in their implementation from state to
stage."
The same position was reiterated in one form or another in
all the subsequent plan documents including the Seventh Plan. The
Balwant Rai Mehta Team appointed in 1957 recommended constitution
of statutory elective local bodies with the necessary resources, power
and authority devolved on them and a decentralised administrative
system working under their control, which became the genesis of the
Panchayati Raj System introduced in the country. The Planning
Commission issued guidelines for District Planning as far back as 1969.
In 1977, the Planning Commission appointed a Working Group under the
Chairmanship of Prof. M.L.Dantwala to draw up guidelines for block level
planning. Another Committee on Panchayati Raj headed by Shri Ashok
Mehta was appointed in 1977. Both the committees submitted their
reports in 1978. In 1983, the Economic Advisory Council to the Prime
100

Minister presented its Report on Decentralisation of Development

Planning and Implementation in the states. The latest in the series of
such reports is that of the working group on District Planning submitted to
the Planning Commission in 1984, which formed the basis of the Seventh
Plan proposals on decentralised planning.
Barring a few exceptions, the performance in respect of
decentralised planning has been dismal, despite periodic reiteration of
intentions and the setting up of formal structures like Panchayati Raj
Institutions on a statutory basis. After the initial enthusiasm in the late
fifties and early sixties which raised expectations, there has been a
retrogression for over two decades now.
Although the idea of
decentralised planning at the district level has been revived recently with
some vigour. It is necessary to bear in mind that a periodic revival of the
idea, has been a part of the history of our planing. It is important, to
understand why the idea, though all along with us, has failed to work. In
the absence of a proper understanding of the forces operating against
decentralised planning, the present exercises are bound to result in the
repetition of platitudes. A hard and objective look at the factors inhibiting
meaningful decentralisation of planning and those conductive to it is
called for.
In the discussions on decentralised planning it is readily
assumed that our growth performance would have been distinctive better
and the distribution of benefits from development far more equitable if
only we had effective planning at the sub-state, particularly at the grass
roots, levels. However, it is necessary to examine the validity of this
proposition in the light of the factors or elements contributing to growth in
the post-independence period and the competing claims, under the
prevailing social structure, on the gains development at the grass roots
levels. In the light of such analysis, it would be necessary to identify the
desirable degree of decentralisation in planning land the socio-political
preconditions for making it feasible consistent with equitable distribution
of benefits from development.
III.

DECENTRALISED PLANNING : EXPERIENCE OVER TIME

Political and bureaucratic resistance at the state level to

sharing power and resources with the local-level institutions for planning
from below, is often cited as the single most important reason for the
failure of decentralised planning to strike roots. Therefore, those from the
centre who advocate decentralised planning have been exhorting the
state governments time and again to implement the agreed schemes and
guidelines on decentralisation. In view of the tardy progress on this front,
there are moves now to secure constitutional sanction for periodic
elections to the Panchayati Raj Institutions and delegation of certain
planning functions as well as devolution of resources to them by
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specifying subjects under the District list, the State List and the
Concurrent List. It maybe noted, however, that Panchayati Raj
Institutions do enjoy even at present some kind of statutory position in the
states, which has not prevented the state governments from encroaching
upon their powers and functions under various pretexts and through
various devices. It may be noted, on the other hand, that the Planning
process in the country, both at the centre and in the states, has been
working reasonably well despite the absence of constitutional provisions
either in regard to the planning functions or the devolution of plan
resources to the states.
The experience of the working of the Panchayati Raj
Institutions has revealed that under the prevailing social structure and
properly relations, the rural elite has often come to dominate these
institutions and appropriated a major share of benefits from development
so that the improvement in the living conditions of the poor and the
under privileged has been negligible. In view of this, those who see
decentralised planning as a means for improving the socio-economic
condition of the weaker sections, are skeptical about the prospects of
decentralised planning unless structural changes are brought about to
ensure the rise of the rural poor to a position of dominance in these
institutions.
It is true that lack of political will at the state level and the
dominance of the rural elite at the grass roots level are basically
responsible for the failure of decentralised planning to materialise and for
the non-fulfillment of its avowed objectives in most cases where it is on
ground. But what is overlooked is that lack of political will at the grass
roots level is equally responsible for the failures. It is puzzling to observe
that despite the improvements in educational levels, general awareness
and political consciousness over the last few decades, the pressure for
decentralisation is coming now not so much from the grass roots as from
the grass roots in this regard introduces a measure of skepticism about
the prospects for decentralisation in planning.
Since decentralised planning involves delegation of
decision making powers to the sub-state levels with corresponding
devolution of resources, the performance in this respect is very much
linked with the politics of planning and development within a democratic
framework. In the early years of planning, the political leadership both at
the central and state levels had an ideological commitment to
decentralisation, as most of them were in therefore front of national
movement for independence and hence shared the perspectives of
development in a free India as espoused during the freedom struggle.
This generation of leadership also felt politically secured and confident
because of their pre-eminent position earned even before independence.
Also, in the early years of planning, the levels of public expenditure was
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relatively small, accounted largely by the essential infrastructural

investments.
Over a period of time, however, the struggle for political
power began to manifest itself at the state level. The state leaders
almost everywhere encountered challenges to their power and within the
ruling party itself and became increasingly controversial and weaker and
hence began to feel insecure. On the other hand, planning and public
expenditure steadily grew in importance. The rising importance of public
expenditure provided opportunities for political consolidation to the ruling
elites at the state level. The allocations for schools, hospitals, roads,
water works, etc. which can potentially be decided upon at the district
level by the elected institutions, began to be increasingly made by the
dominant groups at the state level by superseding the local-level
institutions. The conflicts became sharp in cases where such institutions
were dominated either by those belonging to a different political
complexion or to a different political group within the ruling party itself.
In this process of decision-making from above, a large part
of the local elite at the district and other levels became as beneficiary
from such dispensions. The local elite in course of time got recruited into
one or other channel of political power and patronage flowing from above
and thus became an integral part of the political establishment. These
developments may indeed explain why there is no discernible movement
and pressure from the local-level elite for effective decentralisation in
planning at the district and block levels.
It is also important to recognise that the imperatives of
development planning in the initial stages favoured centralised decisions
at higher levels. For one thing, development of infrastructure, e.g.,
power, major and medium irrigation accounted for the bulk of the state
plan outlays, which could be planned better at the state level. Even the
divisible outlays on items like education and health could be decided
upon at the state level, without serious loss of efficiency.
Secondly, technological changes introduced in agriculture
around the mid-sixties were, of necessity, exogenous to the sub-state
levels, as they had to originate from research stations and universities.
The extension of new methods of cultivation and the supply of modern
inputs like high yielding seeds, fertilisers and pesticides through
centralised agencies led to the strengthening of line departments at the
expense of the community development and Panchayati Raj Institutions.
Thirdly, the initiative for institutional changes such as land
reform, nationalisation of banks, etc. came from above from the central
leadership and the leadership at the state level merely fell in line. Thus
the initiative for such basic structural changes did not originate from the
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`grass roots' where the vested interests got fully entrenched and indeed
put up resistance to measures on land and credit reform and managed to
sabotage them to a considerable extent.
Fourthly, by the late sixties and early seventies, the
development experience had belied the assumption that economic
growth will automatically result in the reduction of poverty. Population
growth at well over two percent per annum and the highly inadequate
percolation of benefits from development to the poor under the prevailing
social structure, was leading to social tensions and political unrest.
Local-level institutions functioned well as long as they were concerned
with problems such as roads, schools, hospitals, etc. which were
common to various interest groups. But the rural elite were not interested
in programmes which benefited mainly the poor and the underprivileged.
When poverty removal was incorporated as an explicit
objective of development strategy in the early seventies, several
programmes for the benefit of small and marginal farmers, landless
labourers, scheduled castes and tribes were launched at the initiative of
the government at the centre. Given the prevailing social structure and
dominance of the rural rich at the local-level, it did not appear, at least in
the initial stages, that decentralisation was necessary for the effective
implementation of such programmes. Indeed, the experience with
institutional reforms pointed to the need for a contrary course of action.
The rural elite which continued to be opposed to be various beneficiaryoriented programmes meant for the poor, was largely by passed in the
initiation and implementation of such programmes. However, these
programmes continued to encounter resistance from them in subtle ways
including the appropriation of a large chunk of benefits meant for the
poor.
In view of the above experience, it appears an exaggeration
to think that lack of decentralised planning has proved to be a serious
impediment either to growth or social justice. After all, the ideas of
planning, moderanisation, democracy and social justice did not originate
from the grassroots. They were largely borrowed from the experience of
the West in the course of their own struggles for independence,
democracy, development and social justice. A national consensus was
built around these goals in the course of our own national movement for
independence over a long period.
This is not to suggest, however, that these ideas are either
alien to our culture or can not be implemented through the democratic
institutions at the grass roots levels. In fact, we are reaching a stage in
the developmental process and the evolution of our democratic polity
when decentralised planning has become both necessary and possible.
The outlays on social development and poverty alleviation which are
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divisible in nature are becoming increasingly important as a proportion ot

total plan outlay and, potentially, most of them can be planned best at the
local level. Secondly, the dominance of the rural rich in the elected local
level institutions, though very real in most places so far, is not an
unchangeable phenomenon. As discussed later in this paper it should be
possible to devise an electoral system whereby the poorer starta come to
dominate such bodies. As it is, the awareness on the part of the poor
and the underprivileged is much better now than in the initial stages of
our planned development. By introducing certain measures for social
change, it should be possible to ensure an effective participation of the
poor in such institutions. Such a participation has become necessary not
only for better planning for various poverty alleviation programmes but,
more importantly, for minimising leakages in their implementation so that
the benefits of these programmes reach the poor.
IV.

EXPERIENCE ACROSS THE STATES:

The above discussion should not lead to the interference

that decentralisation as such in planning did not matter at all in India so
far either for achieving grown or for ensuring social justice. The effective
decentralisation in planning in India exists today at the state levels vis-vis planning at the central level. The effectiveness of decentralisation at
this level did seem to affect growth and where institutional reforms have
been successful, it did seem to make an impact on social justice also.
The effectiveness of decentralisation at this level did seem to affect
growth and where institutional reforms have been successful, it did seem
to make an impact on social justice also. The effectiveness of
decentralisation in planning at the state level seems to depend very much
on the size of the state, the greater seems to be its ability to take
decisions quickly and implement the programmes effectively by promptly
reaching the grass roots levels and responding to their felt needs.
Similarly decentralisation at the sub-state levels seems to be effective
and percolation of benefits to the poor satisfactory wherever land reforms
have been effectively implemented. The viability of the size of the state
and structural changes brought about seem to have had a greater impact
on growth and social justice than formal decentralisation of planing below
the state level.
The experience of Punjab and Haryana illustrates how
smaller states with progressive land tenure systems can grow faster with
more equitable sharing of benefits of growth even without decentralised
planning at the sub-state levels. The per capita income of these states is
highest among all the state of the country and the growth rate in income
has also been about the highest among states. The system of land
tenures is progressive and the proportion of people below the poverty line
is the lowest in the country. There is hardly any decentralised planning
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worth the name below the state levels nor is there any enthusiasm visible
among the politicians and administrators for decentralised planning, e.g,
district planning in these states. Indeed, they seem to be somewhat
skeptical about the need for decentralised planning, as bulk of the
resources are committed for the development of irrigation and power so
that there is already a clear leg between the development of such
infrastructural sectors and sectors of social development which can be
planned at the state level. However, owing to the increase in demand for
labour in agriculture and rural industries, the wage rates are high
resulting in a greater reduction in the poverty ratio than among other
states. In view of the ease with which various government functionaries
are able to communicate with grass roots levels, decentralisation in
planning does not appear as an immediate felt need in these states. At
the sub-state level, the effective units for decentralised decision-making
seem to be the millions of farm and non-farm households whose initiative
has been released on account of progressive land tenures, good
infrastructure, profitable technology and responsive administration.
At the other extreme are big states like Uttar Pradesh,
Bihar, Madhya Pradesh and Rajasthan where decentralisation of
planning at the sub-state levels is highlighted as a felt need and one finds
a visible concern among politans and administrators for decentralised
planning. However, it is precisely in these states that decentralised
planning is least successful. It appears as if the very largeness of size
which necessitates decentralisation militates against it. For one thing, a
larger state is also, as a rule, a more powerful unit in terms of
concentration of political as well as bureaucratic power. Devolution of
planning functions and resources to a large number of districts would
mean immediate partying away with enormous power enjoyed by the
politicians and bureaucracy at present as also foregoing the opportunities
for the political dissent and instability and the ruling elite can ill-afford to
surrender the instruments for consolidation of its power. Secondly since
decentralisation in planning does not amount to giving complete
autonomy to sub-state levels and indeed involves considerable amount of
work a the state level by way of coordinating and monitoring development
work through decentralisation, a switchover from the existing style of
work of taking decisions directly to an indirect management through
decentralisation among innumerable units is not an easy job. These
states are thus too big and centralised to embark upon decentralisation.
These states account for the lowest per capita income
among all states and their rate of growth in income has in general been
lower than the national average. The proportion of peoples below the
poverty line among these states is highest when compared to other
states in the country. There is, therefore, a severe resources crunch in
these states in relation to the essential requirements for infrastructure
development and poverty alleviation. The scarcity of available resources
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also militates against their adequate sharing with units at the sub-state
levels. These states are also characterised by outmoded land tenure
systems with the vestiges of semifoudal relationships. The Panchayati
Raj Institutions are, therefore, easily dominated by the rural elite and, in
quite a few places, even by those lacking commitment to the democratic
norms and processes. In such a situation, one cannot expect genuine
concerns at the grass roots levels fort decentralised planning, much less
for an equitable distribution of benefits to the poor and the under
privileged. The technical capabilities for planning are also lacking at the
lower levels, although this cannot be considered a significant bottleneck
in these states.
Whatever decentralised planning that is practised at the
district level in these states, and indeed in most other states in the
country, is done essentially by the bureaucracy by putting together the
various schemes undertaken by the different departments within the
parameters set at the state level. In quite a few cases, this can even be
described as district planning done at the state level. Even planning at a
regional level such as for Hill Areas in Uttar Pradesh is reduced
essentially to the putting together of schemes undertaken by various
departments at the state level and at best monitoring of the flow of
resources into the region on account of such schemes.
Even states like, Gujarat and Maharashtra which have
pioneered decentralised planning at the district level in the country, find
the area of freedom for the allocation of resources at the district level
extremely limited. In Gujarat, for instance, where about 30 percent of the
state plan outlay in accounted by district-level schemes, a bulk of it is
accounted by the departmental schemes and only about 20 percent of it
or about 6 percent of the total state plan outlay is amenable to free
allocation at the district level. Besides, as much as 80 to 90 percent of
the outlays on district level schemes are accounted by the expenditure
for on-going schemes and very little is left for the new schemes to be
undertaken.
A more serious limitation to the effectiveness of district
planning even in such advanced states, not adequately appreciated so
far, arise from the failures to reduce disparities in development between
different regions. Marathwada and Vidarbha in Maharashtra, Saurashtra
and Kutch in Gujarat, Telangana and Rayalaseem in Andhra Pradesh
and Uttarakhan in Uttar Pradesh are some clear examples of the less
developed regions. When some of these areas were merged to constitute
the linguistic states at the time of states reorganisation, as in the case of
Maharashtra and Andhra Pradesh despite the recommendation to the
contrary by the states' Reorganisation Commission, it was done with the
assurance that special steps would be undertaken to bring these
backward regions on part with the developed regions. However, the
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politics of planning in a democratic set up within the state as a political

unit have been such that is became increasingly difficult to impose
sacrifices on the developed regions to the advantage of backward
regions. The evidence, on the contrary, points to the accentuation of
disparities as in the case of Marathwada and Vidarbha in Maharashtra,
Rayalaseema in Andhra Pradesh and Uttarkhand in Uttar Pradesh. This
has happened despite the constitutional provisions to safeguard the
interests of the backward regions through the establishment of Regional
Development Boards with special powers to the Governors for Monitoring
progress, as in the case of Maharashtra and Gujarat.
It is wrong to expect that decentralised planning at the
district level by itself can go a long way in reducing regional disparities in
development. For one thing, the backwardness of each of these regions
consisting of a number of districts, arises either from specific agroclimatic factors or from long periods of neglect before they were merged
into the composite states. Because of these reasons, an integrated
approach to the planning on infrastructure for each of these regions is
required for removing backwardness. This is necessary even for making
district planning effective by providing infrastructure which is beyond the
district level outlays. The potential district level plan outlays account for
only about 25 to 30 percent of state plan outlay. Maharashtra shows a
higher figure of around 40 percent. This means, as much as 60 to 70
percent of outlay is still planned and allocated at the state level for
various infrastructural items, including particularly power and major and
medium irrigation which have a bearing on the development of individual
districts. Besides, in a mixed economy like ours, the level and pattern of
private investment, particularly in the non-agricultural sectors, which can
be influenced by state policies, is an important determinant of
development. The major infrastructural investments and measures to
induce private investments can be planned at the level broadly
homogeneous region consisting of a number of districts.
The distribution of resources for the district level outlays
among districts in several states is broadly analogous to the Gadgil
Formula for the distribution of central plan assistance to states. Thus
population of a district gets a major weightage together with some
indicators of social and economic backwardness. In some cases
weightage is also given to urbanisation. It is not clear, on balance,
whether the backward districts end up by getting significantly larger
allocation in per capita terms then the developed districts. In any case,
the implied progressively is likely to be modest considering the backlog of
development in the less developed districts. Therefore, unless there is a
mechanism to ensure that the flow of benefits from the remaining 60 to
70 percent of the plan outlays has a significant degree of progression,
the observed progressively in the district-wise allocations can not make a
significant impact on the removal of backwardness. It is possible to
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conceive of a situation where the pattern of state-level outlays is such

that it more than neutralises whatever progressively that exists in the
district level allocations. That this is indeed so has been alleged time and
again by the leaders of backward regions.
Where Maharashtra and Gujarat have pioneered district
planning, their performance in respect of regional planning has been
dismal, despite the existence of constitutional provisions in this regard.
Indeed, there is evidence to believe that the move for district planning got
a special impetus in Maharashtra towards the seventies when there was
widespread discontent in the backward regions. District Planning began
to be considered seriously as an alternative for countering the `narrow'
and `separatist' regional sentiments. The ready acceptance of the idea
of district planning has its basis in the reluctance on the part of a number
of states to pursue planning at the regional level. However, there is no
doubt in the measure in which problems of regional backwardness are
simultaneously addressed through appropriate mechanisms.
It is interesting to note that states where decentralised
planning at the district level is effective are precisely the states whose
performance in respect of land reforms has been better. West Bengal,
Karnataka and Jammu and Kashmir belong to this category. West
Bengal is poised for decentralised planning down to the village level.
Karnataka has embarked upon a bold legislation for delegation of
planning functions to the district-level elected institutions and for creating
the institutional mechanism for the devolution of resources on the lines of
the Finance Commission at the National Level. In Jammu & Kashmir, the
whole cabinet including the Chief Minister attends the district level
meetings, conduct public hearings and sanctions the schemes on the
spot. Although this cannot be a substitute for decision-making by the
local-level institutions, it is certainly an improvement over the practice of
taking decisions in the state capital and is an effective mechanism for
expediting implementation. Because of some structural changes brought
about in these states, there is reason to believe that benefits of
development are likely to be shared more equitably.
V.

EXISTING POSITION, PROSPECTS AND MAJOR AREAS OF

ACTION

We have come a long way from the romanticism of fifties in

regard to decentralised planning. Planning at the regional level is
conspicuous by its absence and whatever planning that is practised at
the district and lower levels is virtually divorced from the Panchayati Raj
Institutions, which have often been superseded despite the statutory
status enjoyed by them. There are nor proposals for bringing in
constitutional provisions for holding elections to these bodies regularly;
for devolution of resources by specifying their functions; and for adequate
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representation to weaker sections.

A number of assumptions underlying the current optimism
need critical examination in the light of the past experience. Statutory
provisions are no doubt desirable but do not seem to be sufficient to
effect a break from the past. We have seen that regional development
boards became defunct and virtually extinct in course of time despite
constitutional provisions and, in the case of Maharashtra, despite the
unanimous resolution passed by the state legislature urging
implementation of the constitutional provisions. Constitutional provisions
can not be a substitute for the requisite political culture and political will.
If the elected state governments can be superseded on account of
political exigencies, there is no basis for entertaining different
expectations in regard to the local-level institutions. Further, in view of
the fact that even the recommendations of a constitutional body like the
Finance Commission are not mandatory on the Union Government, it is
not reasonable to expect that statutory provisions alone would be
sufficient to ensure adequate transfer of resources to these institutions.
We have pointed out the possible motivation of certain state
governments behind the ready acceptance of the idea of district planning.
At the central level, there seems to be a nave and somewhat
exaggerated feeding that something has basically gone wrong with
planning in India because the decisions are made at the centre and state
capitals and that, therefore, future plans should be built from below, i.e.
from the district and village levels. It is overlooked in this process that
planning at the district levels, under the best of circumstances, can
concern itself with not more than one-fourth to one-third of state plan
outlays and the rest has, of necessity, to be planned at higher levels.
One, therefore, gets the feeling that there is a temptation to find softer
solutions to the harder problems of development and deficiencies in
planning in general. It also need to be understood that centre's role in
decentralised planning is purely advisory and such of the assistance that
it can render for district or regional planning has to be done through the
state governments whose consent and participation is therefore a
necessary precondition. Decentralised planning should not become a
factor in the deterioration of centre-state relations.
In the current discussions on district planning, the
overriding issue seems to be the improvement in the decision making
process through the delegation of functions. Decentralised planning as
an effective instruments for the formulation and implementation of
poverty alleviation programmes has not been brought into the focus,
presumably because of the belief that once the power is delegated to
lower level, implementation of these programmes will automatically
improve because the elected representatives are accountable to the poor
and the underprivileged who constitute the vast majority of our electorate.
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While this is true in the long run, a formal delegation of power is not
sufficient to ensure this unless simultaneous measures are taken to bring
about structural changes to weaken the socio-economic power that the
rural rich wield over the poor, ensure adequate representation to the poor
in these bodies through the necessary electoral reforms and improve the
bargaining power of the poor themselves by organising them into activity
specific groups and associations and through the involvement of
voluntary or non-governmental organisations in the formulation as well as
implementation of these programmes.
As mentioned earlier, notwithstanding the dismal
performance in regard to decentralised planing, the need for such
planning is greater now because of the increasing importance of
programmes for social development and poverty alleviation and also
because the prospects for such planning are better now on account of
better unavailability of infrastructure at the lower levels, improvement in
education levels, public awareness, etc. At the same time, if past
experience is any guide, there should be no room for euphoria in this
regard.
In addition to the statutory provisions currently under
discussion, five major areas of action are indicated from the past
experience, for making decentralised planning effective. These are :
1)
2)
3)
4)
5)

Suitable modifications in the Centrally Sponsored

Schemes so as to impart greater flexibility for local
level planning;
Measures for planning at the regional level,
particularly in bigger states;
Electoral reforms to ensure adequate representation
to the poor in the local level institutions;
Structural changes to release the initiative of the
rural poor by freeing them from various forms of
socio-economic exploitation; and
Strategy to ensure people's participation, among
other things, by involving voluntary organisations.

All these measures would require considerable political will

on the part of both the central and state governments. These are briefly
discussed below:
Centrally sponsored schemes usual embody national
concerns and, despite the opposition from certain state governments,
their important has increased in the recent period. They mainly relate to
agriculture, rural development of
poverty alleviation, health and
education. Being divisible in nature, central assistance for such schemes
together with matching outlays may account for bulk of the outlays at the
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district level. Assuming that such schemes are intended to meet certain
national goals and are essential in the sense that these are not likely to
be taken up by the State Governments without the central initiative, a
major reform needed for the fulfillment of the objectives of the schemes is
to make the schemes only indicative from the central level, that is, to
define the broad purpose of the schemes are leave the detailed planning
of the schemes including target-setting and devising instruments for
achieving the objectives, etc. to the institutions at the district level. It is
extremely important for central ministries dealing with such schemes to
indicate clearly the area of freedom in planning available to the local
institutions. Indeed, the central ministries can ensure through these
programmes that decentralised planning is practised at the local level.
On the other hand, if the central ministries insist on doing detailed
planning of these schemes themselves then decentralised planning will
be highly circumscribed, the objectives of the schemes may not be
fulfilled and centre's credibility in its advocacy of decentralised planning
will be called in question.
Regional planning for backward areas provides the test for
the credibility of state governments in regard to their avowed policy of
removing regional disparities in development. As pointed out earlier,
district planning, by itself, can not be effective in removing regional
disparities without a corresponding effort at the regional level. In some
cases, such as Maharashtra, the existing constitutional provisions
provide for an executive role by the governor in the implementation of
regional development programme. Fears have been expressed that such
a practice may lead to parallel centres of authority within a state which
may result in friction and disruption of administration. If this is indeed
likely to be the case, alternative mechanisms have to be found with the
consent of the people's representatives of the concerned regions to
undertake and monitor developmental measures at the regional level, so
as to carry conviction with the people of the regions concerned. The
centre, on its part, should take as much interest in regional planning as in
district planning, particularly in respect of the backward and sensitive
regions in bigger states.
Given the prevailing social structure dominated by the rural
rich, the existing election process for Panchayati Raj Institutions based
on the territorial wards provides an opportunity for the rural elite to get
elected to these bodies in large numbers and acquire a dominating
position. As mentioned before, the dominance of the rural elite in these
institutions is the single major factor accounting for implement the poverty
alleviation programmes.
Unlike planning at the central and state levels, planning at
the district and lower levels is concerned essentially with the specific
schemes which benefit identifiable areas and individuals who are in direct
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contact with the elected representatives. What is involved at these levels

is not basic policy making or major decisions on inter-sectoral allocations
but translating the plans into concrete schemes suited to local conditions,
mobilisation of local resources, identification of beneficiary areas and
families, and minimising leakages by ensuring public vigilance and
participation.
These tasks can be performed best if those occupational or
functional groups who are affected most by such planning are adequately
represented in these bodies, where the candidates themselves belong to
such groups. This can be ensured through proportional representation to
broad occupational categories such as small and marginal farmers,
agricultural labourers, artisans, etc. which cut across castes and tribes
can be built into this system which can be made simpler and
manageable. This system may not appear necessary in states where the
social structure is such that the functional groups can be adequately
represented even under the existing system of elections. But for other
areas the system of proportional representation to occupational groups is
worth trying to begin with at least on a pilot basis in some selected blocks
and districts.
In the long run, however, there is no alternative to
democratising the rural social structure by eliminating the exploitation of
the poor and the underprivileged by the big landowners, usurious money
lenders and contractors. There has been a continuous interaction
between democracy, planning and socio-economic structure ever since
independence. However, the experience shows that the impact of the
existing socio-economic structure on the functioning of democracy and
planning has been more pronounced. Planning and democracy as
instruments for structural change have not been tapped adequately so
far.
Towards this end, it would be necessary to pursue the
effective implementation of land reforms, minimum wages and provision
of institutional credit including for essential consumption. It would also be
necessary to ensure reasonable prices to the small producers including
the tribals for their minor forest produce by abolishing the contractor
system and the middle-men. Such reforms relentlessly pursued can
change the balance of socio-economic power in rural areas in favour of
the vast majority of the poor and the underpriviliged and thus create the
necessary conditions for the effective voice for these groups in the local
level institutions.
The former structures for the participation of the people in
the form of the Panchayati Raj Institutions can be effective only in the
measure in which the initiative and awareness of the people, particularly
the beneficiaries from the local level planning, is raised by organising
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them into activity-specific groups, associations and cooperatives, and by

using mass media to disseminate useful information to them. The role of
voluntary or non-governmental organisations is extremely important in
this respect. Although the involvement of voluntary organisations these
tasks has been accepted as a matter of policy, the progress has not been
very encouraging so far due to bureaucratic inhibitions and even
resistance.
The crux of the problem in raising the initiative of the poor is
the lack of leadership which is pro-poor, motivated and has the courage
to mobilise people against injustice. A leadership with all these qualities
is necessarily scare. Perhaps the scarcest among these leadership
qualities is the ability to overcome all the procedural difficulties or
formalities in dealing with the official programmes, and the capacity to
fight against the vested interests in the rural areas. If it is the question of
only providing skills and selfless services and motivating the people for
group endeavor and running their institutions, such people - the teachers,
engineers, doctors, scientists and technicians - are available in large
numbers, thanks to the long tradition of voluntary work in the country.
Government intervention can play a major role by way of simplifying rules
and regulations, lending full moral and material support to individual
leaders and associations against harassment from vested interest, pettibureaucrats and police.
If this support is forth-coming from the
government, the leadership bottleneck will not be as formidable as it
appears now.

Source : Background Material, National Workshop on Implications

of 73rd and 74th Constitutional Amendment Acts on District Planning
and Development, School of Planning and Architecture, New Delhi.

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INFORMATION NEEDS AND SYSTEMS FOR

DECENTRALIZED PLANNING
K.V.Sundaram
Our contemporary society in the Third World countries has
witnessed, and is still witnessing, some rapid and extraordinary changes
and challenges in various directions - political administrative, economic,
social and technological-which are perhaps far more spectacular in terms
of magnitude and impact than any experienced so far during a
comparable period of human history. The major changes witnessed
during the 1950's and 1960's included decolonization (in a number of
countries), central control of government functions and ushering in of a
massive effort directed towards national reconstruction and development.
This was followed during the 1970's and 1980's by a succession of far
reaching changes in development design and administration. Perhaps it
is more appropriate to characterize this latter period of change as a
phase of "development challenges," i.e. challenges that are being thrown
up by the very dynamics of development. To meet these changes and
challenges, the developing countries are adopting various methods,
which include adaptations, adjustments, rationalization, restructuring and
even total transformation in government and administration.
-

It is perhaps better to start this essay by examining how the

development scenario is changing in the developing countries and what
specific challenges are being faced in the context of the subject of our
discussion. The changes, and the challenges experienced here are
broadly in the following four directions:

Changes in the orientation of planning from a growth-oriented

paradigm to one based on growth with equity, stability and
sustainability, demanding new planning strategies.

Changes in the structure of planning from a centralized approach

to a more decentralized approach directed towards improved subnational development planning, characterised by multiple
development objectives.

An enormous need for disaggregated data and information for

planning purposes at different levels and also the need to handle
and analyze this data with speed and accuracy.

The revolution in the field of information technology itself, involving

the multiple application of micro-technology and optical
electronics.
115

The above development challenges, however, could not be

effectively met in most countries, with the result that some notable gaps
have appeared between what is obtaining and what desirable. Perhaps in
no area of development planning are these gaps so striking in their
manifestations, as in the information sector at the sub-national levels.
Here, the present situation is so critical that I would prefer to characterize
the problem context as one of an "Information Crisis". This crisis has a
historical basis, particularly in the colonial history and the subsequent
developments in many countries, which led to centralized control of
government functions and the establishment of a "top-down approach" to
planning.
These political and administrative changes profoundly
influenced the structure of development in every sphere of activity.
In the information sector, this resulted in establishing a
system of data collection favouring those aspects and activities relevant
to macro-level planning, e.g. national accounts-covering national income,
savings and investments, foreign trade and the monetary system. Such
data, as generated, were at a rather aggregated level with, of course, a
fair degree of secotrial disaggregation suited to planning at the national
level. With the changes that have now come about in these countries,
necessitating the introduction of decentralized planning characterized by
multi-objective approaches, the network of development planning
information "systems" established earlier has demonstrated its
irrelevance and non-utility to the changed context. Governments in the
developing countries are struggling with the existing structure and
organization of data and information systems, and are seeking to adapt it
for meeting the new needs of planning-related data at the sub-national
levels. However, in many countries, these changes have not come about
quite satisfactorily. What is perhaps needed now is a total reversal of the
earlier system and its substitution by consciously designed (networks of)
planning information systems suited to a multi-level planning context. In
fact, the nature and degree of transformation called for in the information
sector to cope with the emerging needs of planned development is the
major preoccupation of this paper. As we go along in this discussion, the
problem of how to bring about the requisite degree of transformation in
information provision activity, in the technical, technological and
organizational directions as well as in country-specific contexts will be
commented upon. The changes taking place in a dynamic planning
context in India will receive special attention in the latter part of this
paper.
Decentralized Development Planning : Critical Issues in Change and
Transformation
Our point of departure here is Decentralized Planning or
Multilevel Planning, in the context of the new orientations or strategies
that are emerging, to make planning and development increasingly
116

attuned to the structural, demographic, economic and social

characteristics peculiar to each country and areas within a country. This
essentially involved the sharing of planning functions at different area
levels and devising of appropriate mechanisms and procedures for the
effective capture, processing and "flows" of detailed information, interface
between and among the area levels, as well as interaction for the
meaningful participation with the people. All such arrangements are
intended to make the planning process at the various spatial levels, on
the whole, harmonious, interdependent and participatory and the plans
themselves geographically relevant, authentic and implementable.1 What
is very significant about multi-level planning is that it is a technical
exercise as well as a management and negotiation process. Decisionmaking here is based on a "participatory or negotiated planning
approach"2, which means that such decisions are not made on a
unilateral or even bilateral basis, but are the result "negotiations" among
a number of concerned parties. In the information context, this means
that we have to reckon with not one, but several information users and
often several distinct needs. Taking these varied requirements into
account, we now need data and information at different spatial levels of
aggregation and disaggregation. Particularly in the context of the
changes planning orientations and strategies, we now need data on a
large number of micro variables, touching on a wide range of
distributional and equity issues-income, poverty, employment, standard
of living, basic services (their access and delivery), quality of life and
sustainable development-either on a universal or on a large sampling
frame basis. Further, as decentralized planning is increasingly area as
well as people specific, we need to know more about the cultural and
behaviour patterns of the people, their asset ownership systems, the way
they handle or practise their economy as well as their institutional and
organizational capacities. It is only with such knowledge that we can plan
for feasible technological packages for their benefit, provide systems of
support facilities and services to backstop their economy and make
appropriate organizational and institutional arrangements to facilitate their
development. This is one aspect of our data and information need, i.e.
the need for more information, more authentic information and microlevel information, which so far has not been effectively captured by our
traditional statistical machinery in the various countries. Experience with
data and information availability in many developing countries has
indicated that, generally speaking, the amount of data decreases as the
area unit changes from larger to smaller. Also some local-level data are
low powered and undependable.
Thus decentralized sub-national planning, cutting across a
number of hierarchical levels, would result in the introduction of a

117

planning process, which may be seen as increasingly information

intensive as well as information selective. In this context, not merely has
the need for data and information at disaggregated levels grown
tremendously, but also the need for some extremely specialized and
specific information in relation to the new development strategies. It is to
be emphasized here that while these data and information needs have
been, by a large, perceived and identified by planners and administrators,
the information provision activity itself in many countries is yet to respond
fully and appropriately to the varying perceptions of development
planning and to the different strategies that are being sought ot be
introduced from time to time.
The problem today is not merely one of proper identification
of data an information needs for different levels and stages (or phases) of
planning. This, no doubt, is an important item in our agenda for
discussion and will be considered in the latter part of this paper. With the
need to collect an increasing volume of information, and the need to use
this information for performing a wide range and depth of analyses for
planning, there has also surfaced data handling and processing
problems, while developing countries can no longer ignore. There is also
a speed or time factor implied here, because the decentralized planning
process is a time-bound activity. Here the plans have to be prepared
according to a time calendar (often specified in legislations pertaining to
the particular area level) and integrated with each other, and ultimately
with budgeting/allocating machinery of the government and submitted in
time for authentication and approval to the appropriate authority in
accordance with the democratic traditions and practices prevalent in
particular country. So there is a rigid time frame to be adhered to in all
planning-related activities. This means that the processes of data
collection/updating, transformation, processing and analyses for planning
have to respond with speed and commitment to conform to this time
frame. This "time squeeze" is a factor that has to be carefully
understood. It, more or less, sets a limit to the nature and volume of data
and information to be collected, the way sin which these may be
collected, the kind of processing and analyses for planning that may be
performed, and the kind of compromises that may sometimes be
necessary.
It is here that we have perhaps to pay some attention to
certain concepts like "critical minimum information" and "reduced
analytical approaches" for planning. All these are closely linked to some
concepts like the concept of "limited or bounded rationality" (i.e. not trying
to know what is not worth knowing), the concept of "appropriate
imprecision" (i.e. not measuring more precisely than needed), and
techniques like "rapid rural appraisal", "key informants approach",
"successive approximation", "progressive learning", learning through
118

transects",3 etc., which are now and then raised and discussed in several
forums today, with a view to getting over or lessen the "nightmare" of
data collection and the "tyranny" of statistical analysis.
The increased speed and accuracy needed in the
processing of large quantities of information for decentralized planning
could be met by the developing countries through an intelligent
application of the rapidly advancing information technology, based on
computers and telecommunication advances. These developments in
information technology have placed at our disposal tools that can quickly
collect, store, process and transfer data and information of all kinds.
Indeed, the developing countries cannot afford to ignore these
developments, because what we are dealing with here is nothing less
than a powerful "technological avalanche", which is unstoppable because
of its innate dynamism and also because of the economic conditions of
4
today's international market place.
The problems before the developing
countries, therefore, are : how to match these two needs, i.e. the users'
needs and the need to take advantage of the potentials and capabilities
of the information technology and how to benefit through the innovative
approaches of data and information handling and processing.5
If we accept the contention that the information challenges
of the developing countries are to be met through a rigorous assessment
of critical minimum data and information needs and the intelligent
application of information technology, one must be prepared also to effect
some necessary degree of organizational and administrative changes
and also to modify the strategic planning process, as necessary, so as to
incorporate information technology as an explicit and major support to
decision-making for sub-national level planning. Changes in organization
needed to support the new information technology have been termed as
"orgware" by Nijkamp and de Jogn.6 While the changes implied in
"orgware" are indispensable to achieve maximum benefits from the
technology, in a multi-level planning context, they are to be preceded by
the establishment of what this author would like to call "multi-level
information structures". In the dynamic system of multi-level planning,
the planning authorities at different spatial levels have to continuously act
and interact with each other, before firming up decisions on programmes
and projects. If this is to be dealt with efficiently, data and information for
planning must flow up and down and in all directions. These flows
cannot happen automatically,unless specific institutional structures are
created for that purpose and procedures established for the direction of
the flows. Thus one major step in the innovation needed in the context of
the application of the new technology is to establish suitable Information
Structures to match the Planning Authority Structures. In other words,

119

what we need at this stage of transition is the establishment of a system,

which will effectively link the users of information with those engaged in
providing that information.
In the changes and reorganization that have to come about,
I consider the establishment of these linkages as of crucial important.
Without such linkages, the opertionalization of decentralized planning in
many countries has tended to become less effective, as available data for
planning have not consciously related themselves to the users' (i.e.
planners') needs. In fa
ct, in many countries today, both "Authority" and
"Information" Structures are not only weak, but also "Unmatched".
Further, such changes as are being introduced in many countries are
merely responding to symptomatic deficiencies, as opposed to planning
and managing more fundamental changes, which is very much desired.7
In this context, we would like to place great emphasis on the
organizational changes that are called for-in particular, for the matching
of information structures with planning authority structures. These two
types of structures have to match and mesh and mutually complement
each other, if decentralized planning activity is to become realistic and
effective. There are different ways in which this coordination can come
about. One approach may be to build the information structures into the
planning authority structures themselves. Alternatively, if they remain
separate, some consultative mechanisms may be established for
interaction and understanding. In some countries, the planning and
statistical personnel are brought into the same "Economic Service" for
career development. Thus they move freely across planning and
information provision jobs, thus bringing about the required coordination
and understanding.
Current State of Art on Data and Information and Sub-national
Levels
Several critical observations have been made in regard to
the present state of art on the data and information obtaining at subnational levels in the developing countries. The picture is sometimes
confusing. In the mainstream debate on data inadequacies, some points
which have been emphasized are :
-

Paucity of data, refreshing to lack of data, sometimes called

"under-information". This is specially in regard to primary data
relating to income, consumption, employment, housing, health or
nutrition behaviour.
Conflicting data, with the existence of multiple estimates of the
same phenomenon in the files of different ministries or in the files
of different divisions of the same ministry, providing different
estimates.
120

Irregular data, referring to lack of a definite periodicity or timeliness

in the availability of information.
Imperfect data, referring to data of doubtful validity.
Irrelevant data, referring to the existence of abundant data on
some aspects that are strictly not necessary for planning.
Insufficient data, referring to gaps in information, either in terms of
spatial coverage, or subject coverage, or both
Incoherent data, referring to information which does not relate to
each other.

One view that has been expressed is that in many countries,

there is adequate data with numerous agencies and the problem is one
of selecting the "best data set" and coordinating future data collection on
systematic lines. According to an assessment, "the rural problems is not
one of insufficient data, but one of an abundance of imperfectly veracious
data".8 Proponents of techniques like Rapid Rural Appraisal (PRA)
assert that :
-

Too much data is collected;

Irrelevant data is collected;
Late and inappropriate results are produced; and
In data collection, there is too little/no participation by the local
people.

In the above context, less adherence to long and costly

formal surveys, resort to some more informal and participatory
approaches to data collection and reliance on local insights have been
advocates.
On the other hand, countries which have embarked on
local-level planning and decentralized programmes of the poverty
alleviation type find themselves seriously hamstrung by lack of adequate
data pertaining to several micro-variables. Even in countries, which
have established a regular National Sample Survey Organization
(NSSO), the data and information that are collected are often inadequate
to meet the requirements of local-level planning, e.g. India.9 On some
aspects, like employment for instance, data have been found to be
inadequate for rural manpower and employment planning. Apart from
quantitative data, decentralized planning has to rely a lot more on some
important qualitative information on the ordinal scale.
Particularly on some important aspects like socio-economic
behaviour, intra-generational aspects of development, some aspects of
development like indigenous development practices, development impact
and development monitoring, the qualitative information is very relevant.
Such qualitative information is usually contained in the several formal
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field studies undertaken by various agencies. But there is no systematic

means of "extracting" such information and providing them to the
planning bodies for the meaningful analysis and interpretation of
development problems.
Several suggestions are being made to
overcome and such problems, e.g. suggestion by UNRISD for the setting
up of "socio-economic observations" in rural areas in order to obtain
periodic data on socio-economic changes.10
In a heterogeneous context, where different countries are
developing their decentralized planning systems in different ways, it is
difficult ot generalize whether the present data and information available
for planning is adequate or inadequate or in what respects or directions,
they should be supplemented and how (i.e. the methods of survey/data
collection).
The data problems listed here (lags,snags,gaps,
inadequacies, etc.) need country-specific assessments and solutions.
A Conceptual Base for Deriving Data and Information Needs
Data and information are essentially tools or means to
planning. In this context, their potential roles are :
-

For problems definition, measurement and analysis;

For inventorying and decision-making;
For evaluation of plans, programmes and projects; and
For orienting planning to people's perspectives (not merely to
planner's perspectives).

To meet the above planning-related purposes, various

types of data and information will be required. They could be spelt out or
derived conceptually by adopting some rational approaches and building
into them relevant considerations.
To elaborate such a conceptual base for the derivation of
the data and information needs, four distinct levels for planning may be
assumed, viz. regional, local, community and household levels.11 For
each level, the data and information requirements may be derived
through a combination of four major approaches, in which the key
determinants are:
-

Goals/sub-goals
and
Policy
Areas
(sectorwise
programmewise);
Scope of Planning Functions;
Programmes/Projects included in the plans; and
Methodolgy/Techniques used for planning.

and

The identification of data and information could be further

aided and refined by two other considerations, viz. the various planning
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stages (pre-planning, action planning and implementation planning) and

the major planning tasks or steps involved in each one of these stages.
The rationale and approach indicated here for the identification of data
and information requirements would call for very meticulous work in its
actual application. Some illustrations are available.12
Information System
Applications

and

Information

Technology

current

While the term "Information System" may refer to any

apparatus or method, which allows the transfer of information between
producers or sources and users of information, in the modern context it is
used in the sense of sophisticated technology and computerization, with
its components of human actors (users and staff), information,
information processes (i.e. relating one information element to another),
data, data processes (i.e. processing of data) and hardware (equipment).
Statistical and other information processed and presented in readily
unable form, no doubt, greatly assists in advancing both the planning
process and its supporting analyses. In the planning context, an
information base that is oriented towards both "problems finding" and
"solution finding" is essential. All these would suggest that an information
system has to be purposive. In a multi-objective framework like
decentralized planning there could be, therefore, a number of information
systems, which, however, must relate to each other. For meeting the
data and information requirements for multilevel planning, the information
system may perhaps be conceived in two broad contexts : (i) as a nonspecialized general purpose system, which could be utilized by a
heterogeneous group of users concerned with policy-making and
planning at the regional and local levels (i.e a policy and planningoriented information system). This can handle the planning tasks of
diagnosis (i.e. the setting of goals), strategies, priorities and targets),
which constitute the first stages in planning cycle; and (ii) as specialized,
individual action-oriented systems, focusing on specific requirements (i.e
designed for sectoral planning and other specific planning orientations).
For this, we must start with identifying the various programme/project
segments associated with each sector of planning and their objectives.
Then we should design the information system appropriate to that
segment of planning. A Geographical Information System (GIS) would
also fall in this special category, dealing with spatial data set, the sources
for which may include field surveys, air photography, remote sensing,
satellite imagery and existing maps and records.
As for the use and application of modern information
technology for planning purposes, the progress in the developing
countries is quite slow and uneven. What has been achieved in most
cases are incomplete inventories of some baseline data and the
automation of routine, record keeping applications primarily in finance
123

and revenue raising services. Some applications for planning have been
attempted in a few countries, e.g. China, India, Thailand, Nepal, Sri
Lanka and Indonesia.
This shows that the application of information technology to
planning related tasks is in very formative stages of development in the
developing countries of the Asian region. The attempts made so far are
piecemeal and selective and not designed to cover the entire spectrum of
planning activities at the various levels. In order to take advantage of the
potentials and possibilities thrown up by the new technology, and
introduce it in a big way in a comprehensive and wide-ranging context, it
would be necessary for these countries to establish some essential
prerequisites as follows :
i)
ii)

iii)
iv)
v)

Establishing a reliable collection of data at the sources and

imparting knowledge as to how to feed these into the system;
Installing micro-computers for performing specific planning and
analytical tasks at various spatial levels and networking them with
the mainframe
computer, thus establishing a viable
communications network in the country;
Developing a suitable software to handle the variety of planning
problems;
Building up a sound personnel base, with experts conversant not
only with the technical side of their equipment, but also with the
methods of handling the vast volume of statistical materials; and
Sensitizing or rendering the top policy experts in government,
particularly in the ministries of finance and planning,
knowledgeable about the potentials of the new information
technology and information system.

Transition to Information Age

Towards a "Stages Approach" and a "National Information Policy
Overcoming the numerous existing constraints and
establishing the above prerequisites at one stroke would be a tall order
for the developing countries. In this context, a search for feasible
solutions and making some compromises seem necessary. Perhaps a
useful approach could be a "blending" of old and new technologies and
gradual adoption of the new technology. Proceeding in a modular, way
i.e. stages in steps. In this case, the new information technology will not
suddenly replace, but slowly supplement existing technologies. Such an
approach would be in response to the various existing constraints in the
developing countries and would ensure :
i)
ii)

A smooth transition from existing to new technology

The optimum utilization of existing equipment and skills;
124

iii)
iv)
v)

Possibilities of upgrading equipment in case of growing demand;

A wide diversity of outputs to meet all types of needs; and
The possibility of step-by-step progress in establishing equipment
to allow for staggered investments and training.

In the context of the adoption of the new information

technology and preparing themselves for the transition to an information
age, in which the emphasis will be on evolving and end-user and
decision-support information systems, developing countries have to
proceed with much caution, deliberation and care. Quality control,
technical competence and systems compatibility are important issues
associated with the implementation of the new technology. A blind
imitation, in our euphoria for innovation and change, may result in
unnecessary data duplication and inconsistencies. It is necessary to take
a clear view of the "planning task environment" as a whole in the context
of each country, and then decide the way in which information technology
can be applied. Which of the key areas of planning should receive the
first and foremost attention (i.e. identification of the strategic information
system opportunities), what organizational structures and related
procedures should evolve, as information systems are developed, are
important questions for decision-making. These are essentially policy
issues. What is clearly indicated at this moment of transition, therefore,
is a "National Information Policy", which incorporates information
technology as an explicit and major component of the policy, and spells
out the "what, where and how" of the adoption and utilization of the new
technology in the country's development context, particularly he
t
emerging "planning task environment". Two recent international
conferences-at Kawasaki (Japan and Visakhapatnam (India)-ended their
deliberations with a "declaration", calling upon the developing countries
to adopt explicit policies for the information sector.
My reliable
knowledge is that no country has, as yet, come forward with a national
policy declaration on this subject. This shows that countries are moving
towards the information age in a "policy vacuum", which is a risky venture
and a dangerous portent. The best that can be done at this moment will
be to make a very strong reiteration and lay emphasis on this strategic
need, so that the developing countries can build up a reliable,
scientifically sound and coordinated data and information system,
avoiding the mistakes and costs associated with their haphazard
development.
The Case of India
Changing Information Scenario for Development
Now I discuss the present state of art on data and
information system in India. The Indian case is particularly interesting,
because the country has relatively a rich acquisition of planning-related
125

data and information at sub-national levels and has made some striking
adaptations and adjustments in its administrative and organizational
structures for data collection and dissemination, in response to several
policy and programme changes that have been initiated, particularly
during the 1970's and 1980's. Being a country of vast sub
-continental
dimensions. (Area : 3.3 million km 2 Popn : >700 million), federal
structure (twenty-four states and eight centrally administered territories),
heterogeneous population (differentiated in term of castes and economic
classes) and development experience representing a wide spectrum of
approaches to development, planned in the framework of individual
projects and regional and area programmes, the data and information
requirements here are indeed stupendous and varied. India has also a
vast reservoir of scientific and technological manpower, with the result
that the technical personnel constraints that usually inhibit technological
advances in many developing countries do not pose a serious problem
for India. However, efforts to harness the science and technological
capability towards innovations in the information sector had barely started
during the Seventh Plan period (1985-1990) and is now gathering
momentum. It cannot be over-emphasized that the next phase of
developments in India is going to be in the direction of a revolution in
information technology, involving extensive applications of the new
technology in a wide range of planning and development contexts.
In considering the data needs in the Indian context, the
development approaches, strategies, policies and programmes that are
adopted at the sub-national levels constitute a crucial consideration.
Soon after Independence, the country addressed itself to
some essential tasks. These included :
1.
2.
3.
4.

Conversion of the law-and-order system of administration into a

welfare and development oriented system;
Building up of popular institutions at the grassroot level, which
could motivate the masses into identifying themselves with the
national development efforts;
Co-ordination and streamlining of the technical services, which
under the traditional administrative system had been working in
isolation from each other and from the people; and
Generation of development oriented local leadership suited to the
changing circumstances. 13

Following the experimentation with community development

programmes, central intervention continued in rural areas, trying to give
programmatic content to the various problems thrown up from time to
time in the form of special programmes. These special programmes
impinging on local areas (districts, blocks and villages) have created the
need for a tremendous volume of disaggregated information, touching on
126

various micro-level aspects. Simultaneously, since the Seventh Plan

period (1985-1990), a major thrust or emphasis in planning is being
directed towards decentralized district planning and in creating a
responsive administration aimed at changing the power structure in the
countryside. Thus the point that we would like to emphasize is that the
changes in the orientations of planning at the sub-national levels, leading
to a plethora of special programmes, the vigorous push towards
decentralization and the changes in the institutional aspects of rural
development have brought to surface the numerous data lags, gaps,
inadequacies and inconsistencies at the regional and local levels, and
equally the necessity to quickly process and analyze this data for
planning and monitoring tasks. The developments that are taking place
in India in the information sector have to be viewed in the light of these
changes and are intended to cope with the requirements of the present
development situation, particularly decentralization.
Existing Database and Organization
In countries like India, it is important to realize that the data
and information system has evolved as part of the administrative
organization of the country. Now that it is serving the needs of
administration as well as development, it cannot be overemphasized that
in a dynamic development context, organizational flexibility is one of the
foremost requirements.
In the developments that took place in India during the
1960's and 1970's, with the emergence of several new "differentiated"
area-specific and target group-specific programmes, a number of new
agencies with their own organizational structures within the
district/division were created, leading to the development of pluralistic
planning and development structures and increasing the problems of
coordination and integration. These "differentiated" structures are now
yielding place to "integrated" structures, with the formation of a new
agency at the district level - the "district Rural Development Agency"
(DRDA). Simultaneously, with such organizational integration, a multilevel planning process has emerged, which views planning as an interlinked activity. This has served to emphasize effective data and
information flows between the among the different territorial levels and
the establishment of organizational and communication linkages among
them, so as to facilitate reciprocal inter-action, exchange, cooperation
and resolution of conflicts. Against the desired organizational changes
as envisaged above, we may now examine the nature of the existing
database and how it is organized. For the purpose of this analysis, we
may classify the data and information into seven major categories : (1)
Geo-based information; (2) Socio-economic information; (3) Special
purpose information : (a) special programme-wise; (b) sector-wise; (4)
District level Information; (5) Sub-district-level information; (6) Village
level information; and, (7) Household level information.
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(i)

Geo-based Information

This consists of information with spatial dimensions or

locational distribution. The various geo-based data and information on
natural resources are scattered among numerous agencies. At present,
the updating the flow of this information is irregular and spatially
unintegrated. Such regular updation and revision of natural resources
data is now possible, thanks to the advancements in satellite imagery,
remote sensing and computer sciences, which have revolutionize
the data acquisition and processing methods in this context, cutting down
the time and increasing the precision. In order to use the natural
resources data meaningfully for planning purposes at the different spatial
levels, it is necessary to ensure a joint and interrelated presentation of
the resources information. In this context, the building up of an
"integrated resource information system" on a scientifically established
database in emphasized. The next phase of development in regard to
geo-based information in India has to be an "integration and
consolidation phase", intended to bring together the various raw data
generated by the various agencies for numerous applications, after
paying due attention to the question of standardization and compatibility.
This would mean carrying out the required degree of processing and
analysis and converting the raw-data into meaningful information that can
be readily used by the Planning agencies for various development
purposes. The Survey of India and the National Remote Sensing Agency
will have a crucial leading role in this respect.
The Survey of India is an important apex organization, with
its counterpart in all State Governments and together with the National
Remote Sensing Agency (NRSA), which is a more recent development it
is today in a position to provide "integrated" information for planning at
decentralized levels. The Surveyor General of India had drawn up a
blueprint to develop a common database, using multi-disciplinary groups
for integrating spatial data, including statistics, maps and aerial
photographs (including space imagery, as relevant) and computer
graphics for generating alternatives. 14 It envisages a multi-level effort
with a National Level Task force to coordinate and standardize
procedures and monitor the programmes. Under this scheme, the
geodetic and resources information generated through the various
Central Agencies would passed on to planning teams at the state level,
where these teams will be organized to process the information
according to districts, using micro-computers and computer assisted
mapping systems. 15 The Surveyor General's proposal is to be seen in
conjunction with a recommendation made by an important Working
Group on District Planning appointed by the Indian Planning
Commission,16 which has emphasized that for every district in the
128

country, the following seven thematic maps should be prepared : (I)

Geological; (ii) Groundwater; (iii) Soils; (iv) Forest; (v) Existing Land Use;
(vi) Optimal Land Utilization; and (vii) Integrated Resource Information.
In a demonstrative exercise undertaken for one district-Karimnagar
District in Andhra Pradesh-NRSA has prepared a set of such maps and
indicated how it can be used in scientific district planning. The
replication of this exercise on a country-wide scale should be undertaken
by the Survey of India in cooperation with NRSA. Developments steered
in this direction will result in substantial building up of integrated resource
information, which will be a great support to decision-making at the subnational levels. For improving the decentralized planning methodologies,
such developments have to be accelerated with speed, commitment and
decisiveness.
Socio-economic Information
Information in the socio-economic domain covers a wide
range of human, social, economic and employment aspects, information
on basic services and community facilities, besides information relating to
production, technological, financial, infrastructural and institutional
aspects of development pertaining to the various development sectors.
For some basic information, e.g. Population, Income, Consumption,
Agricultural Infrastructure, Industrial Establishments and Employment
Market Information, periodical information is thrown up by various
organizations. The population census, the national sample survey, the
agricultural census, the census of industries, economic census and
labour statistics, which provide fairly good quality and dependable
information. So far as information on sectorial aspects is concerned, the
data provision activity is organized at the central and state levels in a
well-integrated manner. The Central Statistical Organization and the
State Bureaus of Economics and Statistics constitute the organizational
pillars of such information. These have their support at the district level,
where a statistical officer is invariably available to collect and transmit
relevant information. Below the district level, at the level of blocks (a
group of about 100 villages), there is a Block Development Office, in
which is posted an official designated as Progress Assistant, who
maintains development information pertaining to the block. At the village
level, the revenue officials maintain all relevant information and as the
revenue system in India is very well organized (a British legacy), all the
basic data required are available on a systematic basis (every year
updated in a routine manner). The organizational structure with vertical
and horizontal levels of integration may been seen in Fig. 9.1. In point
of time, the state bureaus are a later development and their
organizational growth occurred with the generation of an increasing
volume of development data at the sub-national levels in the wake of the
emergence of special area-specific and target-group-specific
programmes and new emphases given from time to time to district and
129

block-level planning in the country. These developments took place

during the 1970's and 1980's and it is during this period that several state
governments made concerted efforts to build up their economics and
statistical bureaus, to bring about the required vertical and horizontal
integration of data at the different spatial levels. These developments are
still not complete. There is much streamlining yet to be brought about to
establish regular "flows" of information from the numerous programme
agencies and special-purpose authorities and vice-versa. There is also
the need to strengthen the linkages between planning authorities at the
district and block levels and the statistical bureaus. Further the
differences in methodologies adopted for computation of certain essential
information, like the state income estimates at the central and state
levels, have led to discrepancies in estimations between the different
Level of
Operation

Data Producer and Manager

National

Central Bureau of
Statistics & Economics

State
(Regional)

State Bureau of
Statistics & Economics

Department
Statistical Cell
Department
Statistical Cell

District
(Sub-regional)

District Statistical
Office

Departmental
Statistical Cell

Local

Block Development
Office

Village Level
Statistics

FIG. 9.1 : Vertical and Horizontal Levels of Integration of Socio-economic

Statistics in India.
Source:

Routray, J.K., Data Base : An Aid to CIS Application for

Decentralized Micro-level Planning in Developing Countries Indian Experience. Paper presented in the International
Conference on 'Geographic Information Systems, Application
for Urban and Regional Planning : A State-of-the-Art Review',
Organised by the United Nations Centre for Regional
Development, Nagoya (Japan), Jakarta 3-6 October, 1989.

sources. Now coordination mechanisms have been introduced to

reconcile these differences. In some states, the bureau of economics
and statistics and the planning service at the state and district levels have
130

a common cadre of personnel, with the result that coordination has

become easier. The situation in this regard varies from state to state.
Nevertheless, there is acute consciousness in every state on the need for
the consolidation well as the vertical and horizontal integration of data
and information at the different spatial levels. An important point to be
emphasized here is that the statistical machinery at the state level has
shown the resilience and flexibility to adapt, assimilate and to respond to
the dynamics of development in the country and to the challenges that
are thrown up in this context. Not only this, the bureaus function not
merely as data collection agencies, but also as instruments of social and
economic surveys and have conducted several studies, throwing up both
quantitative and qualitative information of various kinds.
Thus, it may be seen that in India, the socio-economic data
and information base is quite well organized, and an agile and flexible
structure which is growing at the state level is effectively performing the
bridging and coordinating function. Not only are data and information
relating to all major variables available on a fairly reliable basis, but also
such information is periodically updated (cutting down the decay rate)
and maintained to provide data systematically on a time-series basis.
Nevertheless, there are still some problems associated with the currently
available database in India. Routray 17 has listed the following problems:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Multiplicity of data management institutions;

Neither need specific nor adequate;
The quality of data and question of reliability;
Non-matching data sets on a common theme between two
different sources;
Discrepancy in geographical area for the level of data aggregation;
Inconsistency of data in relation to time and areal units;
Weak vertical integration of the data sources and organization;
Non-adoption of common format/data structure for district and subdistrict level within a state for basic information;
Non-availability of some basic data because of unnecessary
restrictions by the data managers; and
The data organizations (mostly government departments) orient
very much to fulfil the data needs of the government administration
rather than maintaining data objectively needed for universal use
of planning, development, monitoring and evaluation.

Special Purpose Information

In India, several special-purpose area-specific and targetgroup-specific programme shave been launched since the 1970's to
assist the development of certain types of backward areas and backward
groups. Examples are the Integrated Rural Development Programme (a
poverty alleviation programme), programmes for the drought-prone
131

areas, tribal areas and hill areas, the small and marginal farmer's
programme, the command area development programme, employment
programme, etc For the effective planning of such programs, in-depth
data and information are needed in problem-specific and target-group
specific contexts. The problem-specific data may comprise both natural
resources inventory data as well as data on human resources. The
target-group programmes need information and household level. Thus
both primary and secondary data are to be collected. For the planning
and implementation of many of these special-purpose programmes, new
organizational structures have been created. These organizations have
generated a lot of programme-specific data. The problem has arisen in
handling the voluminous data and processing them, as needed.
Computerization and use of micro-computers in this context has become
indispensable and some interesting developments are taking placed in
this direction. This will be discussed later in this chapter.
District-level Information
As noted earlier, the major thrust in planning in India is now
shifting to district and micro-level planning. In this context, much thinking
has gone ahead to visualize the data requirements, their availability in
various organizations and the significant gaps yet to be filled through
fresh surveys and other means.18
Keeping in view the planning functions at the district level,
"the critical minimum" information (to avoid over-collection of data and
"data graveyards") necessary for planning and decision-making have
been identified. This consists of data and information covering all those
areas defined as the "District Sector", plus such background information
as may be helpful in their meaningful interpretation. Such data and
information have then been arranged under certain meaningful analytical
rubrics under six data sets as follows:
i)
ii)
iii)
iv)
v)
vi)

Natural resources data set

Demographic data set
Agro-economic data set
Socio-economic data set
Infrastructure data set
Data inputs from primary surveys.

Besides the data and information indicated in the six data

sets above, detailed information about on-going development
programmes and their achievements will be necessary. These are
particularly indicated when new developments, like zero-based
budgeting, are being introduced at the state level. Besides the statistical
information, some maps intended to reveal the spatial relationship among
the various developments have also been suggested.19
132

Sub-district Level Information

At the sub-district level, the Block (a cluster of about 100
villages), has emerged as an important developmental administration unit
in India, with democratic decentralization also established at this level
through a people's organization, called "Panchayat Samiti". A sub
-district
level organization like the block has an essential role in bringing about
balanced spatial development, eliminating intra-district disparities in
development and enabling closer public participation in development. Of
late, the thinking has emerged in some states that even the block is a
large unit for planning at the sub-district level, and a smaller unit named
as Mandal (a cluster of about 15-20 villages) will be more appropriate for
this purpose. Some states, e.g. Karnataka, and Andhra Pradesh, have
already adopted such a unit for sub-district level planning. Probably
developments, such as this, would be desirable in all the states, as it will
lead to the emergence of a viable unit for micro-level planning, which
would enable the better functioning of the government delivery system on
the one hand and the building up of effective people's receiving
mechanisms on the other. Currently, the data and information machinery
at the block level, which is centred on one multi-purpose official-the
Progress Assistant functioning under the Block Development Officer-has
proved to be a very unsatisfactory arrangement, as the Block Office has
become an overloaded apparatus of development administration, with the
proliferation of several development agencies at the sub-district level and
the operation of a plethora of poverty alleviation programmes. In this
context, a revamping and energizing of the sub-district level data and
information has become imperative in many states.
Village-level Information
As noted earlier, because of the existence of a sound
revenue machinery in the states of India, extending from the collector at
the district level to the patwari (known by different names in the various
states) at the village level, the land records, and information pertaining to
the primary sector (agriculture) are available in the villages on a fairly
satisfactory basis. The development information at the village level is
available with the extension machinery. To enable the essential villagelevel information to be compiled systematically, the village index Card
system has been introduced since 1982. Many states have adopted this
system and some are also taking steps to computerize the village-level
information. The village level again is an area, in which more innovative
changes can be introduced, to render the collection, maintenance and
flow of information more systematic and organized.

133

Household-level Information
With the proliferation of special-purpose and area-specific
and target group specific programmes, micro-level planning has become
data intensive and reliable and authentic data at household level (with
particular emphasis on "Profile of the Poor") has become an urgent
necessity. Such data are now being collected through special household
surveys designed for each individual programme. A lot data and
information are also being generated during the monitoring of these
programmes. The handling and processing of all these voluminous data
is posing serious problems. Further, the micro-level data relating to the
beneficiaries of several poverty alleviation programmes have to be
maintained carefully "over time", to monitor and study the behaviour of
these households after initially crossing over the poverty line. For the
efficient collection, storage, processing and retrieval of such data, the use
of the new information technology is particularly indicated, as it will bring
speed and sophistication in the analytical process. Developments in this
regard with be discussed in the sequel.
Development of Information Systems
In the field of information technology, many important
developments are taking place in India. These are still in various stages
of trial and experimentation (i.e. pilot research and development stage)
and evolution, although some programmes are past this stage and have
entered a stage of operationalization on a country-wide scale. The four
major directions in which the current efforts are focussed are:
1.
2.
3.
4.

Development of an integrated geographic information system

(NRDMS Project);
Computerization of Rural Information System (CRISP);
Developing an Urban and Regional Information system (URIS),
and
Networking all districts in the country through a system of
computers and satellite, for efficient multi-level planning and
management called "District Information System of National
Informatics Centre: (DISNIC).

It is interesting to note that all the above-mentioned efforts

are directed towards the establishment of decentralized information
systems and are mutually complementary. The consolidation, integration
and unification of these efforts may take a long time. Nevertheless, by
themselves, they seek to cover certain distinct components of the
planned economy in stages. In a vast country like India, where the pace
and pattern of any development effort is bound to be uneven among the
states and "unified approach" is difficult to implement, technological
developments must necessarily come about in "stages and steps". This
134

is what is happening. A brief account of the state of art in this respect

has been attempted below.
Development of an Integrated Geographic Information System
This is an attempt to develop a computer-aided spatialoriented database for data storage, retrieval, dissemination and analysis
as well as the economic aspects of planning. It is called the Natural
Resources Data Management system (NRDMS). It is intended to
generate area-specific profiles of natural resources and socio-economic
parameters and decision-support models for micro-level planning. The
database store information on attributes, location (geo-coordinates) and
time-the primary constituents for generating dynamics resource profiles
of an area. Under the NRDMS project, pilot data bases have been set up
in nine places located in eight states with different geo-enviornments.20
For extending the project throughout the country, Aggarwal's blue
-print21
approach referred to earlier is quite relevant.
Computerization of Rural Information system (CRISP)
Attempts to introduce a decentralized information system,
to make the planning and implementation of the rural development
programmes more effective, started during the Seventh Plan Period
(1985-1990) by the Department of Rural Development, Government of
India. The idea was to gradually make it a major component of district
planning. The Department has developed a comprehesive system of
monitoring and concurrent evaluation of major programmes of rural
development. The emphasis is on a strong database and feedback on
the implementation of the programmes. Computers are being installed in
all DRDA's, based on the experience of pilot project on Computerized
Rural Information System (CRISP). CRISP became operational in
1988.22 States are developing a technical support organization as a
nodal agency to take over the ongoing process of software
enhancement, training of staff and general technical support to DRDAs.
In the various states of India, computerization is also
extending into certain other selected areas. But the developments in
information technology are uneven across the states. A state like
Rajasthan, for instance, has set up during the Seventy Plan period(19851990) a Directorate of Computer as the nodal agency for coordinating all
developments. This has ushered in a new era of information technology
application in a number of government departments and autonomous
bodies. Madhya Pradesh has computerized the collection of land records
and settlements. Thus a database has been created to record every
detail to a piece of land-name of the holder, crop patterns, tenancy
details, irrigation details and land utilization details. Any individual, on
paying a nominal fee (Rs. 10), can get a copy containing every detail of
135

had land. Thus the computers are heralding the information revolution in
the country. The right mix of technology and tradition continues to be a
database issue.
Development of an Urban and Regional Information System (URIS)
This is a development initiated by the Town and Country
Planning Organization of the Union Ministry of Urban Development with
the assistance of UNDP. Installation of hardware, development of
software and training are the major components of the project. It is being
sought to be operationalized with the active assistance of the State Town
Planning Departments. Data entry forms have been standardized, which
are sent through the state governments to the district headquarters and
from there to various agencies for collecting information. URIS is still
evolving and trying to tackle the various administrative and coordination
problems.
District Information System of National Informatics Centre (DISNIC)
The National Informatics Centre (NIC) under the Planning
Commission is the most important organization in India, which is in the
process of accomplishing a very challenging task of "networking" all
districts in the country through a system of computers and satellite for
efficient multi-level planning and management called the District
Information System of National Informatics Centre (DISNIC). NIC has
established an inter-city network in Delhi called NICNET (National
Informatics Centre Network). NIC is expected to facilitate through this
network (NICNET), the fulfilment of long-flet information gap for the
planning agencies and provide decision-support information for economic
and social development, programme implementation and project
monitoring.
During the first phase of development during the Sixty Plan
period (1980-1985), NIC formed an inter-city network of 20
minicomputers and 80 terminals around a Cyber 170/370 main frame
system. It also acquired and installed four large main frame systems,
NECS-1000 at Bhubaneswar, Pune, Hyderabad and New Delhi. Since
then, the system has been extended from time to time. For the Eighth
Plan period (1990-1995), it is envisaged to strengthen NICNET further by
installing 7,000 earth stations and another 3,000 for special groups like
banks.
As of 1989, 238 out of the 422 districts have been brought
under NICNET. Each of these districts has got a District Information
Office, with PC super AT with four terminals (300 M-byes hard disk, 8 Mbytes onboard-memory and a heavy duty printer). A NIC satellite-based
network links each of these through a "controller" type earth station in
136

New Delhi to their respective state units. The micro-earth station

provides two ports and has a data transmission speed of 1,200 byes per
second and a receiving speed of 9,600 bytes per second.23 The state
units located at the state capitals are in turn linked to mother earth station
located in Delhi.
Thus a massive country-wide computerized network with an
impressive hard-ware build-up has been achieved under DISNIC. This is
now to be followed by the development of the district Information System
consisting of three major aspects, viz:
i)
ii)
iii)

A Monitoring Database;
An Administrative Database; and
A Socio-economic Database

The data components under each database have been

worked out by involving concerned departments at district, state and
central levels. Studies have been conducted for identifying the input
parameters required at both micro and macro levels in all the sectors for
decision-support system. Twenth-six sectors are proposed to be covered
to start with.24 NIC has set up the district Informatics Centre at all the
district headquarters, with fully trained officers and staff, consisting of one
District Informatics Officer and one District Information Assistant to
manage the District Centre. The necessary hardware/software has been
made available at the District Informatics Centre. These centres are
supported by a core group of scientific/technical professionals of NIC in
the State Capital. All the officers and staff in the District Informatics
Centres have been fully trained by NIC. Simultaneously, NIC is also
taking steps to train the field staff of those organizations and agencies,
who are capturing the data in the field, in modern techniques of data
capture, data entry, data reconciliation, querying databases and in the
use of information analysis techniques. When this phase is completed
and DISNIC becomes fully operational and effectively linked to the district
planning process, it will be one of the most important application areas of
information systems, realized on an extensive scale and functioning as a
multi-level planning and management system.
From the foregoing account, which indicates the
evolutionary trends in the development of computerized information
systems in India, we may now consider in broad perspective the likely
future developments. In my view, the future developments will be in two
parallel directions of systems integration. These will be : (a) the fullfledged development of the Geographic Information System (GIS), which
will come about through a logical expansion of the NRDMS project on the
lines envisaged by Aggarwal, Hopefully, the Urban and Regional
Information system (URIS) will be linked to this development; (b) In the
second major likely development, NICNET and DISNIC will become
137

operational and while doing so, they will integrate CRISP and play a
significant role in strategic planning at all levels. It is also possible that
development of information systems may encompass certain other
aspects of development planning, e.g. Enviornmental Planning.
Notwithstanding a simple statement as above, these
developments along with the integration as envisaged here should not be
construed as a natural, inevitable and easy process of change. In fact,
the challenges that will have to be faced in this context of systems
integration will be many. It is in this context that the formulation of
suitable policy guidelines by the government, to guide the information
systems and information technology along the desired path of change, is
very essential.
Towards an Integrated Organizational Network
Building up a scientific database and information system for
an effective decentralized planning and management is a task which is
full of difficulties and challenges. Any system that is built up has to
integrate natural resources data with socio-economic information on the
one hand, and data and information on beneficiaries with those relating
to infrastructure and economic activities on the other. It has also to be
integrated with the planning process operating at the different levels and
finally it has to be integrated with the planning process operating at the
different levels and with the higher order areal units in the hierarchical
planning system of the country. The Indian case, set out here, shows
that the growing demand for data and information in the context of
decentralized planning have been, by and large, met through effectively
manipulating the existing data sources and organizations. This is now
again to be integrated into the organizational structures that are emerging
in the context of the developments in information technology. Lastly,
these information structures have to match and mesh with the planning
structures at the various levels, a point which we emphasized in the very
beginning of this chapter. We would like to emphasize this point again in
our concluding remarks, as this organizational linkage is very crucial. In
the context of the changes that are occurring, the following organizational
elements need to be intermeshed:
1.

The traditional statistical system in the country, which is changing

and adapting itself to the new orientations and structures of
development planning.

2.

The modern computerized information systems and network that

are evolving in the wake of the new developments in information
technology.

138

3.

The new planning structures that are evolving, together with their
counterpart people's organizations at the critical administrative
levels to support the planning process and the participatory
approach implied in this development.

An integrated organizational network comprising the above

elements, in which they can mutually and effectively interface and
interact, leading to a narrowing of the gap between users' needs and
suppliers' provision, will ultimately lead to an improved decentralized
planning. How this may be achieved in the Indian context is indicated
illustratively in Fig. 9.3. But the identification of data and information
needs and organizing their collection and processing in compatible
structures alone are not enough. The entire spectrum of changes
envisaged here has to be carefully visualized and implemented in
appropriate stages through a well conceived "National Information
Policy".

139

REFERENCES
1.

For an account of the principles of multi-level planning, see

K.V.Sundaram : "Multi-level Planning : concept, principles and
some aspects of its application to sectoral planning" in Regional
Planning and Development : Essays in honour of Prof. R.P.Misra,
Edited by K.V.Sundaram et al., Heritage Publishers, New Delhi,
1990. Also K.V.Sundaram "Multi-level Planning. The Indian
Experience" in Urban and Regional Policy Analysis in Developing
Countres", (Ed.) Lata Chatterjee and Peter Nijkamp, Gower
Publishing Co. England 1983.

2.

Sundaram, K.V., Data and Information Needs for Sub-National

Planning, Key Note paper to the UNESCO International Seminar
on "Information System for Sub-national Development Planning",
Visakhapatnam, India 16-20, December, 1985.

3.

For an introduction to the philosophy, approaches and methods,

now known as Rapid Rural Appraisal (RRA), seet "Proceedings of
the 1985 International Conference on Rapid Rural Appraisal, Rural
Systems Research and Farming Systems Research Project",
Khon Kaen, Tahiland, Universityof Khonkaen, Tahiland.

4.

Sundaram, K.V., "An Integrated Approach to Training for the

Establishment and Use of Information systems for Sub-national
Development Planning", Regional Development Dialogue, Vol. 8,
No. 1, Spring 1987.

5.

Sundaram, K.V., "Changing Data and Information Needs for

Agricultural Planning : The challenge for the developing countries",
in Information System for Government and Business : Trends,
Issues, Challenges, United Nations Centre for Regional
Development, Nagoya, japan, 1988.

6.

This refers to the organization structure for using knowledge,

information and opinions in a coherent way. It would need a clear
division and coordination of tasks among operations staff, heads
of data processing departments, administrative personnel and
decision-makers. Permanent arrangements for monitoring and
evaluation is also an essential part of "orgware". See, Peter
Nijkamp and Wouter de Jogn, "Training Needs in Information
Systems for Local and Regional Development and Planning in
Developing Countries", Regional Development Dialogue, Vol. 8
No. 1, Spring 1987.

140

7.

Christopher, C. Benninger, "New Institutional Systems for

Enhanced Regional Planning and Management" in Regional
Planning and Development, (Ed) K.V.Sundaram et al, Heritage
Publishers, New Delhi, 1990.

8.

Lata Chatterjee, "Quantitative Analysis for Regional Policy in

Developing Countries : A response to data scarcity" in Regional
Planning and Development, Essays in honour of Prof. R.P.Misra,
Edited by K.V.Sundaram et al. Heritage Publishers, New Delhi,
1990.

9.

The author found that when block level (micro-level) planning was
introduced in India, the yield data available through crop-cutting
experiments by the National Sample Survey Organization could
not be effectively used, as the size of sample was too low and
could not capture the reality at the block level.

10.

United Nations Research Institute for Social Development,

Measurement and Analysis of Progress at the Local Level by Wolf
Scott, Geneva, 1979.

11.

The specific levels for any country must be suitably defined in the
context of its existing administrative structure.

12.

The application of the "Goals/Policy Areas Approach" in regard to

a specific policy intervention like improving food and nutrition has
been illustrated by Rossmiller and Johnson (1978). FAO has, in
one of its publications, indicated how the "Planning Techniques
Approach" can be used for identifying the data and studies
required for agricultural development planning.
See
K.V.Sundaram, "Changing Data and Information Needs for
Agricultural Planning : The challenge for the developing countries"
in Information systems for Government and Business; Trends,
Issues, Challenges, United Nations Centre for Regional
Development, Nagoya, Japan, 1988.

13.

K.V.Sundaram, "India-Development Experience" in Rural

Development - Capitalist and Socialist Paths, Vol. 4(Ed.)
R.P.Misra, Concept Publishing Company, New Delhi, 1985.

14.

An Integrated Scientific Approach to Rural Development by MajorGeneral Aggarwal, Survey of India, Dehra Dun.(Mimeographed).

15.

It is said that the map of the future may not be the traiditional
printed map. It could be a magnetic tape on which digitized data
duly structured is stored and a hard copy is obtained only when
needed.
141

16.

Government of India, Planning Commission : Report of the

Working Group on District Planning, May 1984.

17.

Routray, J.K., "Data Base : An aid to GIS application for

decentralized micro-level planning in developing countries-Indian
experience" - Paper presented to the International Conference on
Geographic Information Systems organized by the United Nations
Centre for Regional Development, Nagoya, at Jakarta, October
1989 (Mimeographed).

18.

Data and information gaps identified at the district level are those
relating to a(a) income and consumption levels of the population,
(b) employment and unemployment, (c) technology and
productivity, (d) inflows and outflows of goods and services; and
(e) district income estimates. Activities have been initiated in the
various states to tackle these data gap problems. For monitoring,
some states have also brought out special publications on "District
level indicators of development".

19.

Government of India, Planning Commission : "Report of the

Working Group on District Planning", May 1984. The author
served as member-Convenor of this Group.

20.

Midha, R.K., "Note on natural Resources Data Management

System (NRDMS) in Report of the Committee of the Study Group
on Information Gap, New Delhi, 1989.

21.

Major General Aggarwal, "An Integrated Scientific Approach to

Rural Development", Survey of India, Dehra Dun (Mimeographed).

22.

Government of India, Department of rural Development, Ministryof

Agriculture : Annual Report 1988-1989, p.7. For an in-depth report
on CRISP, See "Information Technology and Rural Development :
A New Harvest", in PC World India, May 1989.

23.

Vinod Kumar, T.M., District Information system-The State-of-theArt, (Mimeographed), School of Planning and Architecture, New
Delhi, January, 1990.

24.

"A note on DISNIC" in Report of the Committee of the Study

Group on Information Gap, Planning Commission, 1989, New
Delhi.

Source : K.V.Sundaram, Decentralised Multi-level Planning :

Principles & Practice : Concept Publishing House, New Delhi.
142

CASE FOR DISTRICT PLANNING

-

H.B.Singh

District Planning pre-supposes the understanding of the

processes of district development. This knowledge is either derived from
surveys and studies or from intuition. As is the case in India today, district
level studies are very scarce. Social scientists in India have tended to
take up national problems for investigation, leaving the local and regional
problems and issues unanalysed. The techniques and methods used in
a few available micro-level studies are often the same as found in macrolevel studies. For example, the input-output analysis, a powerful tool of
sectoral integration at the national level, cannot be fruitfully applied at
the regional and local levels in the present context of information system.
Sectoral approach to development, important as it is at the national level,
cannot be equally important at the regional and local levels. Lower the
level, less relevant is the sectoral approach.
There is a sort of in-built inhibition among social scientists
and development institutions to study local problems. Even the national
Institute of Community Development, Hyderabad, has no study on
Community Development problems of the area it is located in. Every one
tends to portray a national or international image by studying problems
which are nationally and internationally important, and which require less
academic and technical rigour to handle.
One can then understand why the processes of
development of a region or district are yet to be understood. We do not
know what really brings a major economic change in a region. We are
unaware of the processes of social change. Our contribution to the
understanding of social development in India has been through the
theories formulated in environments not necessarily similar to those
India. This is not to say that theories or concept formulates elsewhere
need be rejected. They are parts of the tools that must continue to be
used to sharpen our own tools. But if we also develop concepts or
theories which explain the indigenous environment better, we will not only
add further to the store of the knowledge but will also help social
scientists in other parts of the world to improve their own conclusions.
There is thus a need, nay a great and urgent need, for Indian Social
Scientists to engage themselves in micro-studies and thus to improve our
understanding of the processes of development, economic, social,
technological, etc., at the local levels.
There is almost complete lack of understanding of area or
regional development. While the nation as a whole prospers, we find
areas and regions develop slowly, stagnating or deteriorating both
economically and socially. We do not have the "Instrumentalities-public,
143

private, federal, state and local-adequate to cope with regional and local
situations, or endless variety and complexity".(Perloff, 1963).
District Development Process
District development is the combined product of a variety of
decision made at different levels in politico-administrative hierarchy
(external forces) and the relative preparedness of the local populace to
grab the opportunities for development (internal forces). The two forces
must work harmoniously; one cannot be a substitute to the other.
Deficiency or weakness in one can only partly be compensated by the
other.
We will now further examine these two forces and the
harmonious blending of them in order to achieve rapid economic
development and social change.
External Forces
The national development programmes have their impact
on the district level, as the local economy is closely knit with the national
economy through a network of communication, administrative and socioeconomic channels. When a new steel mill gets located somewhere
because of the national level decision, the relation of the constituent
terriotrial unit of a country such as the district with the whole national
economy and the economy of the surrounding regions undergoes a
change. Similarly, when a new national policy on agricultural prices gets
implemented, it has its repercussions on the economy of the district. To
take another example, added emphasis or de-emphasis on the growth
and expansion of a particular sector or industry, in the national economic
plan, benefits regions endowed with matching resources better than
those with resources not so relevant to the chosen sector or industry.
Green revolution in the wheat growing irrigated tracts of the country can
be taken as another illustration.
Technological changes also have influences on regional
economies. Since the capacity of various regions to adapt to new
technology is variable, certain regions benefit more than the others from
new technological developments. In the same way the national transport
network consisting of trunk railway lines, air routes, highways and water
ways have varying impacts on the economy of regions because of the
wide differentials in accessibility. Improvements in transport technology
do not favour all the regions equally, partly because of accessibility and
partly because all regional products or industries do not need the same
quantity and quality of transport services.
One of the very important factors which influences regional
development is the degree of urbanisation. The region which is endowed
144

with growing urban centres is likely to have better infrastructure, social,

capital and development than those which are mainly rural. The degree
of urbanisation and the location of urban centres, however, considerably
depend upon a variety of national policies on urbanisation, taxation, etc.
Internal Forces
The external forces mentioned above only induce change;
they are often catalytic but only when the internal forces are ready to
accept the change brought about by external forces. In a tribal region, a
steel mill of modern sophistication would be of no avail even though it
might be of greatest economic significance for the nation. This has been
very well demonstrated by the Bhilai and Rourkela Steel Plants in India.
The location of these plants was determined partly by the backwardness
of the regions. The contribution of both the plants to national economy is
great indeed, but they could do precious little for the region they are
located in.
One cannot forget the basic reality; underlying all natural
phenomena, i.e., uneven distribution. Whether it is water or petroleum or
thorium, it is not found everywhere. Only a few ubiquitous sources of
energy, like light, are abundantly found on the earth; but even in the case
of light, the polar regions are not endowed with the same amount as the
tropical regions, for instance. Added and related to this are the variations
in the population distribution. Thus the raw materials for productive
purposes are not found equally everywhere, nor are the markets for the
finished products equally distributed.
The above variations lead to variations in the cost of
production. The industries seeking location are of three types. Some are
space bound - they are input oriented or market oriented. Others are
foot-loose and can be located anywhere. The primary activities such as
agriculture, mining, fishing, forestry are space bound and space utilising.
The manufacturing (secondary) activities can be located either at the site
of raw material or market on in-between the two. Whereas the tertiary
activities, such as transportation, banking, marketing recreation, etc.,
have to be at or near the market. Different regions offer different
locational advantages for different types of activities. This naturally leads
to regional variations in locational patterns.
Apart from the above locational factors, the factor of past
decisions, is of considerable importance in locational decisions. Past
decision have led to concentration or dispersion of activities. These
together provide the market inputs and transfer factors. Once a location
decision is made, inter-industry linkages evolve and more industries get
located at the same place, other things remaining the same. This would
happen so long as the sunk costs are high. A time, however, comes,
145

when the location costs overweigh the location advantages.

locations are sought then.

New

The advantage that a region has at a particular time often

fades with change in technology, change in demand for goods produced
and discovery of alternative inputs. The region would grow only if it has a
relatively larger share of the activity which is increasing nationally. As
Perioff has mentioned, it may also grow if it has a relatively declining
share of a declining industry. There can be very many combinations inbetween the two extremes. They must be understood, then and then
alone a sound basis for regional development can be created.
Typology of Regions/Districts
Different regions exhibit different growth potentials. There
are several classifications of regions but from the point of view of growth,
the one formulated by Perloff appears to be most rational and detailed.
This typology is based on the principle of accessibility. It indicates the
limitations within which each region (in our case, the district) functions.
The region, which has poor access to inputs as well as market has
almost no potential for development.
The above typology helps us to achieve two things. First, it
classifies regions on the basis of growth potentials and hence helps us to
choose strategies for regional development. Secondly, it helps us to
understand the role or place of a particular region in the national
economy. A region's growth oftendepends upon its ability to produce
export goods or services at a competitive advantage with respect to other
regions. As exports increase, the income flows into the region. This in
turns expands internal market by improving the purchasing power of the
people. This is known as multiplier effect. The multiple does not,
however, work equally in each region. Much depends upon what the
people do with the extra income generated from exports. In any case, this
leads to a variety of structural changes in the socio-economic system.
The current theories lay excessive reliance on the
manufacture of exports for regional growth. This is also proved
empirically. In manufacturing we include here the processing activities
too. The theories, however, do not say much about what sustains
economic development once it has been initiated by export industries.
According to Perloff, `the occurrence of rapid self-sustaining growth
involves a shift in the relative importance of growth factors away from the
dominance of the export sector and in the direction of the internal
organisation of production-which makes it possible for the region to play
a more elaborate role in the national economy'. Some empirical
evidences, however, indicate that it is the tertiary sector which really
supports and promotes growth. Specially after the first flash of growth
generated by the export sector.
146

Not every element of the tertiary sector, however, appears

to support and promote growth. This sector can be classified into two
sub-sectors-production oriented (POT) and consumption oriented (COT).
It is the POT which supports and promotes regional development. The
POT includes these tertiary activities which are linked directly to
productive sector - agricultural marketing, agricultural extension,
agricultural education, training in agriculture, industry, etc. While the
COT activities play their own important service roles, it is really the POT's
which support development.
To think that all manufacturing activities have the same
impact on development has no empirical support.
Manufacturing
including processing based on local resources and labour producing
enough surplus for export (to the markets outside the region) are the
ones which are most conducive to regional development.
Very
sophisticated capital intensive plans located in backward areas fail to
generate regional development partly because of the non-involvement of
the local population in the plant's activities and partly because the income
generated in the region is subjected to so many leakages that very little
finally remains for regional investment. Labour and management for
such plants are rarely drawn from the region. The commercial and
service infrastructure are also alien to regional culture. All these forbid
the plant and its associated activities to be integrated with the regional
economy.
The typology of regions given above can help us to
understand the potentialities of the district selected for planning and to
identify activities which determine regional development.
Approaches to District Development
The approaches to district planning can be said to be (i)
general, and (ii) specific. Specific approaches are designed to tackle
certain specific or special problems of a district, while the general ones
are applicable to all districts. We propose to discuss in this sector the
general approaches. The approaches are derived from the following
propositions and considerations.
1.

In a developing economy, regional differences in economic growth

and social development cannot be avoided.
The market
conditions on the one hand and natural endowments on the other
generate cyclical changes in regional growth rates. All that can
be done through planned endeavours is to evolve methods of
continuing adjustment so that the regional economy would not
reach a point of no return. This continuing adjustment is, however,
extremely difficult specially in a traditional society where the
institutional structure is less responsive to change.
147

2.

The capacity of a region to attract industries producing goods for

export, is vital for regional development yet no region can sustain
growth for a long enough time unless there exists substantial
internal development both in economic and social sectors. It must
develop the supporting activities specially the production oriented
tertiaries and must make a bold attempt to distribute the new
income as equitably as feasible. In the absence of these
developments, internal market and infrastructure would not
develop fast enough to support growth.

3.

The concept of growth industries has to be modified and divorced

from certain specific industries. For each region there is a
different set of growth industries. For one region, the growth
industry may be agriculture, for another animal husbandry, for the
third tourism and for the fourth steel. An industry which is one
decline in the nation, can thrive in a region and pay large
dividends. While it is obvious that certain industries are more
conductive to regional growth than others, not all regions have the
relative advantages as to input-output access enabling them to
attract such industries (Perloff, 1963). Some regions, therefore,
have to make do with whatever growth is feasible under the
circumstances and perhaps wait for the technological changes
which may offer better advantages. "In terms of such relative
advantages as resources, markets, human skills, amenities,
climate and transportation facilities, some areas can hope to grow
only by attracting labour-intensive industries; others by attracting
certain processing industries which exploit relatively untapped
natural resources; some may have advantages for certain
assembly operations; still others for relatively intensive recreation
activities, etc. Attraction of industry is a competitive matter. A
realistic appraisal
of the region's relative advantages and
disadvantages with regard to input-output access is an essential
starting point for an understanding of its growth potential". (Perloff,
1963).

4.

Regional development is very closely tied up with urbanisation,

leading to the evolution of large and small urban centres. The
regions having well distributed urban centres with efficient and
attractive urban communities can attract capital from outside and
stop capital outflow. A well-developed regional urban system
supported by an efficient network of transportation and
communication lines can be a great asset to a region.

5.

Regional development has to be closely linked with population

growth. Where the region's potentials do not allow growth at a
desired rate and where the pressure of population on the available
148

resources is too great, inter-regional planning designed to siphon

off part of the population to adjoining regions having better
prospects of development has to be attempted. This means that
no region or district can be considered in isolation for development
purposes. Its plan must be in harmony with the plans of the
adjoining regions/districts.
This means that regional/district planning must form a part of the
national planning effort and each government-national, State and
local-must take responsibility for its implementation. The broader
questions of locating national industries, providing power,
extending national programmes touching various sectors have to
be handled by the State and national governments.
6.

Finally, regional/district development requires investments in four

major sectors. It should not be considered to be a programme of
economic development leading to increase in per capita income
alone. In essence, district development attempts to achieve a
higher level of welfare, elements of which cannot be measured in
quantitative terms. The four major sectors are:
(1)
(2)
(3)
(4)

Human Resources,
Natural Resources,
Plant and Equipment, and
Social overhead.

The focus of all regional/district planning should be man

and not the sectors. "In intensive effort to improve education, to prepare
young persons for a life time of skilled, productive work is the keystone of
any development programme.
Compared with other government
measures that have been proposed, public investment in education
promises the greatest relative returns". (Perloff, 1963).
In the context of India, what we need today is a complete
overhaul of our education system, greater emphasis on primary and
secondary education based towards learning skill and under-privileged
class of the society and relating education to indigenous, production
processes.
In the initial stages of development, natural resources play
a very significant role in accelerating growth. To some extent they work
as substitutes to technology and as sources of external resources. The
base for development can be broadened and strengthened through the
intensive development of natural resources. Natural resources also
attract industries and investment.

149

Investments in plants and equipments are important

sources of development where the farms are not viable they must be
made viable through supporting activities based on agriculture, etc.
Similarly, modernisation in industry pays. Investment in social overheadtowns, villages,roads, railways, etc., has always paid dividends in terms
of economic development.
Thus district planning has to be treated as an exercise in
comprehensive planning for development of a district. It should not be an
exercise in sectoral planning. It is here that the integration of economic
and physical planning is required most.

Source : Background Material, National Workshop Sustainable

Rural Development, Concept & Application, School of Planning and
Architecture, New Delhi.

150

PLANNING FOR VILLAGE DEVELOPMENT IN THE

CONTEXT OF CONSTITUTIONAL AMENDMENTS : A
CONCEPTUAL APPROACH
1.0

H.B.Singh

The Context

Indian village are often described as `cultural artifacts' or

`repositories of culture' specially by those who are roud
p
of Indian
heritage and its culturally rich past. Some romanticise villages, seeing
them as flowing with milk and honey, poignant with rustic charm where
people burst into heady folk song and colorful dances at the slightest
pretext. Others modestly and sympathetically, consider villages as
places where a poor peasantry lives a simple life closer to nature. For
others, they are filthy places where uncivilised rustics live with marginal
or non-existent facilities and services. But for politicians, they are vote
banks and easy target for manipulation to serve their political purposes.
With all these differentiation and variations in perceptions,
India still lives in villages. Three fourth of its citizen population lives in 5.8
lacs villages spread everywhere, in every nook and corner of the country
- from the Himalayas to the indo-gangetic plains to coastal areas down
south; and from arid areas of the west to hot and humid areas of the
north-east. All these settlements have their own individuality, fervour
profile, problems and potentials. Being `cultural artifacts' they deserve to
be treated as such - keeping intact their individuality and mitigating their
problems. Initially, development efforts started off with the same basic
premise of Gandhian thought. But somewhere along the way, with
Gandhian philosophy losing out to political compulsions, villages as selfruling entities, as originally envisaged, were forgotten, and in their place
emerged a faceless `rural development' programme. The gover
nment
came out with many sets of such policies and programmes in successive
five year plans treating villages not individually but collectively as `rural
rd
areas'. However the need was always felt and accordingly, the 73
and
th
74 Constitutional Amendments were undertaken to turn villages into
local self governments through the strengthening of Panchayati Raj in
1992.
Eleventh Schedule (Article 243-G)
151

1.1

The Need for Village Development Plans

The 73rd constitutional amendment enjoins that the village

Panchayat will have to perform basically two functions:
a)
b)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.

the preparation of plans for economic development and social

justice;
the implementation of schemes for economic development and
social justice as may be entrusted to them including those in
relation to the matters listed in the Eleventh Schedule
(Government of India, 1992).
Agriculture including agricultural extension
Land improvement, implementation of land reforms, land
consolidating and soil conservation
Minor irrigation, water management and watershed development
Animal husbandry, dairying and poultry
Fisheries
Social forestry and farm forestry
Minor forest produce
Small scale industries, including food processing industries
Khadi, village and cottage industries
Rural housing
Drinking water
Fuel and Fodder
Roads culverts, bridges, ferries, waterways and other means of
communication
Rural electrification, including distribution of electricity
Non-conventional energy sources
Poverty alleviation programme
Education, including primary and secondary schools
Technical training and vocational education
Adult and non-formal education
Libraries
Cultural Activities
Markets and fairs
Health and sanitation, including hospitals, primary health centers
and dispensaries
Family welfare
Women and child development
Social welfare, including welfare of the handicapped and mentally
retarded
Welfare of the weaker sections, and in particular, of the Scheduled
Castes and the Scheduled Tribes
Public distribution system
Maintenance of the community assets.
152

It is imperative therefore to have a village development plan

not only because it is mandatory in the act, but also to reflect people's felt
need and perceptions. From the environmental point of view and in line
with the popular phrase "think globally act locally", it is desirable to take
each village to draw up a plan to ensure eco-balance and sustainable
development. In fact, the first task of every village Panchayat will be to
have a plan to guide development of the village. This paper, endeavors
to put forward a conceptual framework for just such a plan.
2.0

The Variant Village Profile

Indian villages have varied form and structure in different
parts of the country in physical, socio-economic and cultural terms. It
should also be appreciated that villages have an altogether different
profile compared to urban centers. For in villages a)
b)
c)
d)
e)
f)
g)

the social structure are much stronger and more intimate

the place is meant to be a habitat for not only the human beings
but also for their much treasured cattle
the production system is different - it in mostly primary sector
related either to the land, water, vegetation or animals.
Spatial organisation is not segregated and defined but mixed and
fluid
its physical environment is very close to nature
there is low level of technology, facilities and awareness
and there is resistance to change.

With these deferring characteristic, obviously it is clear that

the concepts of urban planning are rendered meaningless in the rural
context. It is because of such insensibility on the part of planners that
many village development plans, and `Model Village' concepts were not
successful. It is imperative, therefore, to appreciate the different way of
life, activity pattern and value system of the rural community (Singh,
1991). The occupation of agricultural and allied actives of cattle,
keeping, horticulture, village artistry and handicrafts call for a different
approach to village development than the conventional urban planning
approach.
2.1

Physical Structure

The structure of the village has to include the built-up abadi

area, agricultural farms, movement channels, pasture lands, orchards,
waste lands and water bodies within its revenue boundary. The living,
working socialising and movement in villages are so interlinked that they
cannot be segregated. All these elements from the indispensable part of
settlement structure of a village and should be taken together for any
planning purpose.
153

2.1.1 Land Uses

There are no standard landaus categories in villages as in
urban areas. However, there are six discemible land use categories
within which many linked subsidiary uses can be identified. These are as
under:
(a)

Village Abadi Area

Residential-houses, compounds, cattle sheds, community facilities

- wells, chaupals, panchayat ghar, religious placed
Commercial - provision and service shops, periodic market place
Rural industrial - artisans' workships, cottage industries
Movement Notes - bus stop, railway station, steamer ghat
Public facilities and services - schools, medical and veterinary
clinic, post office, police station etc.
Open spaces for occasional social events

(b)

Multi-purpose/Transitional Area

Buffer area around the abadi, poultry farms, dairy farms

pastures, orchards, forests, harvesting places, burial/cremation grounds,
bundhas, dams, embankments, wastelands, etc.
(c)

Agricultural Farms
Irrigated multicrop area, dry farming single crop area, fallow
lands, horticulture vegetable growing areas.
(d)
(e)
areas.
(f)

Movement Channels
Railways lines, roads, tracts, chakroads, foot paths.
Water Bodies
Streams, canals, lakes ponds, fish-ponds and water-logged
Others
Quarries, Forest and other government lands.

The landuse pattern in the village is not segregated and

hence cannot be measured accurately. To identify and hence cannot be
measured accurately. To identify an area of a particular landuse, which
is a street as well as an extension of a compound and also a community
meeting place, is difficult. The same place is utilised for transport
channel, residential use as well as public use at different times,
apparently without causing any problem to any one. Though land-use
154

categories mentioned here remain almost common throughout the

country, their pattern and configuration changes considerably in
nucleated villages of the northern plains, to dispersed settlements in tribal
areas, and to the liner disjoined developments along the transport
channels as in Kerala.
2.2

Social Structure

Social structure dictates the physical structure in the village

at family, cluster and community levels creating corresponding physical
spaces. The caste system separates people by physical and social
distance. (Unni, 1965).
Traditionally, the social welfare and security of the lower
castes had been the responsibility of the higher castes of the village.
This system worked along with gradually increasing degree of
exploitation of the weaker sections. In the modern context when social
institutions are breaking and the government is coming into provide social
welfare and security to the lower castes (SC&ST), the good-will that
existed between the lower and higher cases, has eroded. The visible
implication of this phenomenon is the increased emphasis on the subgroup solidarity in the villages.
Since SC/ST are the targeted
beneficiaries of most of the government programmes, the higher castes
are not taking such stances in the right spirit. They try to grab all
opportunities to subvert the benefits meant for SC/ST with the
connivance of the implementing authorities. This has further alienated the
ethnic groups physically and socially. The planning efforts should be
responsive to such a situation wherein the solidarity of a micro-habitat is
protected as well as the functional relationship and the feeling of unity
among the units in the village is fostered.
The village community is divided into traditionally
established groups and sub-groups. This division may or may not be
analogous to the popular secular concept of economic class or
categories of HIG, MIG, LIG and EWS. The planners have to identify,
priorities and study their target groups or sub-groups to emphasise their
welfare in the plan considering the ground realities (Sharmas, 1979).
2.3

Movement System

Movement systems and settlement structure are

complementary to each other in the villages. Unlike urban areas where
houses are often sited simply facing the road, in villages the movement
system with interconnected and closed spaces, forms the spine
around/within which the clusters occur. Yet clusters maintain their
identity, independent of the movement systems.
The movement
channels for men, animal and machines evolve organically in abadi,
155

transitional areas and the farm lands, informally with irregular widths. The
arrival of tractors, trolleys and other automobiles on the rural scene and
the paving of tracks and village streets required under various
development programmes have brought some degree of formality in the
rural movement system.
3.0

The Concept of Development

In the context of villages the theoretical and academic

concepts of development may have to be modified in view of the realities
and the lessons drawn from experiences of the last 4-5 decades. It is
also imperative to note that there is one a clear departure from the
concept of charity to the concept of involvement in the government policy
on rural development (Sahay, 1995). Now development is conceived as
an involved process for the people and by the people at all levels. Rural
development programmes, specially the Green Revolution, has no doubt
benefitted some states like Haryana and Punjab in terms of increased
agricultural production. The additional wealth thus generated, however,
has had no equivalent beneficial effect on the community.
The
consequent extra hands and the capital generated were not suitably
utilised and planned for the next state development of secondary and
tertiary sector activities. There should have been an equally vigorous
programme of imparting new skills related to enterpreneurship,
processing, value addition, investment management, and marketing etc.
Such a programme would have channelised the additional wealth and
excess labour into more constructive avenues in the absence of such an
effort, it was easier for the new generation to fall prey to social evils like
alcoholism and violence degenerating into terrorism and related
problems.
3.1

Development Thresholds

From the experience of rural development programmes so

far as mentioned in the preceding para, it is obvious that optimal
production in agriculture is not good enough in itself. It may only be a
threshold and must be followed by the next stage of a proper utilisation of
the additional produce, creating new kinds of jobs for the villagers.
Poverty alleviation without creating employment opportunities may not be
of much use in the socio-political context. Increase in agricultural
produce may ensure only food supply but for better quality of life, many
other things are needed. Every-one should have a worthwhile job to
contribute constructively to community development and social
upliftment.
3.1.1. First State of Village Development
It is generally agreed upon that most basic requirement for
the process of development is the quality of human resource. Its
156

receptivity to new ideas and willingness to change is a crucial point, to

initiate development as mentioned below:
(i)

Making people Aware and Motivated to Improve : Environmental

Support Systems

The first step is making people aware of what is possible

and making them realise what is at stake, if they do not care for the basic
elements of Environmental Support System (ESS_ - land, water,
vegetation and cattle, also referred to as the life support system and well
respected in the villages. In the background of people's traditional beliefs
and value system, it is easier to convince them through illustration of
success stories of other villages and availability of technology and help at
their doorstep. However, it should also be made clear that success lies
in their motivation and degree of involvement. Thus, with the help of
various government departments, banks, non-government organisation,
research institutions and their own community-based organisations, wellplanned improvement programmes related to soil conservation, land
reclamation, water harvesting, forestation, and animal husbandry may be
started effectively.
ii)

Diversification in Primary Sector Activities, through improved

inputs

After improvement of basic natural resources, inputs to

agriculture, horticulture, cattle rearing and forestry in the form of
irrigation, provision of HYV seeds, fertilisers, package programmes for
daity, poultry, fishery, sericulture, vegetable/fruits/and flower growing may
be made available to the villagers. Such a diversification in agro related
activities may not only increase production in the primary sector but
should also create more employment opportunities for economically
weaker sections and the landless in the village community.
iii)

Optimisation of Primary Sector Produce

With diversification in different primary sector related

activities, and requisite infrastructure availability, inputs from all the
heeling organisations and government departments may be improved.
This should lead to optimal use of land, water, flora and fauna and other
material and non-material resources available in the village, increasing
the wealth generation, poverty alleviation, job creation and enhancement
of the quality of life in the village. More importantly, the stage should
instill the much needed confidence in the villagers in their effect to
progress.

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3.1.2 Second stage Development in Secondary and Tertiary Sector

Activities
The full utilisation of natural resources resulting in optimal
production in primary sector, marks the beginning of the next stage of
development of the village. This is the crucial stage because if it is not
planned carefully, the wealth generated in the first stage may go waste in
socially undesirable activities or a stagnation may occur due to the
inherently fatalistic attitude of the villagers.
i)

New Skill Generation

Villagers have to be prepared to face new challenges

posed by the necessity of value addition,processing, and handling their
produce profitably by themselves instead of allowing someone else to do
the same. It is imperative, therefore, to have vocational training in related
fields like small scale enterpreneurship, processing/packaging
technology, marketing and management. Such a training may be made
available in nearby urban centers to enable villagers to benefit without
the problem of longer distance, cost and bureaucratic hassles in getting
admission therein. The role of NGOs in this regard may also be quite
considerable.
ii)

Provision of inputs of Value Addition and Marketing

Apart from the provision of basic infrastructure of water,

power, transport and tele-communication needed for establishment of
small and cottage industrial establishments, the inputs like banking, cooperatives, market and business support system should be planned to
initiate and strengthen this stage of development.
iii)

Optimisation, Value Addition and Management of Local Produce

This is the stage when all the produce is value added,

handled and managed by trained villagers themselves, in their own
village. The interlinked production activities in primary, secondary and
tertiary sectors may start a process of self sustaining growth. This should
generate multiplier effect in various aspects of development leading to a
take off stage of local economy, thereby enhancing the quality of village
life.
4.0 Planning for Village Development : Basic Premises
a)

Improvement and diversification of the production system is the

`prome mover' of the development process. Other aspects may
be built around this core issue while moving along the path of
development in a planned manner.
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b)

The village as a whole, not only Abadi area but including

agricultural farms and other areas within its revenue boundary,
has to be taken for planning and development

c)

The approach to plan a village for its development has to be

different from an urban area. Here Abadi and the extensive
farmlands are to be planned together, as a meaningful habitat for
man and his cattle with predominant primary sector occupations,
which is entirely different from the urban scene.

d)

The plan has to be inter-related in time and space, to enable its

integration with long and short term needs of the villagers, as well
as the requirement of block and district plans in their policy and
programme aspects (Gupta, 1992).

e)

Professional expertise and help lies in making the plan easier and
simpler, benefit of much of professional cliches and jargon to
ensure people's participation. This should also save time and
meager resources of the village Panchayat.

4.1

Methodology for Village Development Plan

As mentioned earlier, the village development plan has to

be different from the conventional plan for urban areas. It has to take into
consideration all the area falling under the revenue boundary of the
village including Abadi areas of the main village or hamlets, farm lands
and area under other uses. The important thing is to involve the people
in drawing the plan for their village's development. It is imperative,
therefore, to have a simple methodology which is understandable by the
people so that they can contribute to its preparation, approval and
implementation.
Accordingly, the following methodology is being
suggested.
4.1.1 Formulation of Objectives
The objectives of the plan should be primarily the
reflections of people's needs and priorities. It should also take into
consideration the items mentioned in the district and block development
plans with regard to the village. Going by experience of rural priorities, it
may be worthwhile to consider (i)
(ii)

Poverty alleviation and employment generation,

Community welfare,
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(iii)
(iv)
(v)

Infrastructure,
Landuse, and
Sustainability;

as the obvious objectives of any village development plan.

4.1.2. Data Base
Generation of data base may be easily done enlisting the
help of village youths.
But the questionnaire and method of
investigations has to be detailed out professionally to the experts. The
data generated should be regarding population characteristics,
environmental support system, social and physical infrastructure, maps,
plans and details of development programmes carried out or currently
going on in the village (Planning Commission, 1984).
4.1.3 Preparation of Inventory and Thematic Maps
Based on the data collected by the youths, a professional's
help is needed to prepare an inventory of the resources and to have
spatial maps prepared with latest cartographic techniques. The
information used shall be utilised in such a way that spatial deductions
are possible to be understood by the villagers and they are used
effectively in the analysis to be undertaken in the next step.
4.1.4 Study of Development Status,
Projections, Potentials and Issues

Dynamics

of

Change,

This is the main stage of the analysis to be undertaken by

professionals in such a way that its results may be explained to the
villagers to make them understand the problems. However, the emerging
points of this stage are a)
b)
c)

Short term and long term needs

Problems and potentials, and
Issues and Thrust areas

4.1.5 Evolving a Village Development Plan

dimensions a)

The development plan for the village should have three time

Long term 20 years' development policy to be evolved, particularly

with the help of the elders of the village and they should be
involved to see that its reviews are undertaken to ensure continuity
over a long period of time.
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b)

A more detailed spatio-economic development plan of 5 years

duration has to be drawn up in line with the manifesto of the
elected party or group in the Panchayat.

c)

The annual action plan has to be detailed out based on the

priorities and financial availability in a particular year to actually get
implemented on the ground. As a continuos process, the annual
action plan gets reviewed every year for better performance next
year. These annual reviews should be helpful in drawing up of a
new five year plan for the new elected party for the next term in
office of the Panchayat Raj. These three plans are inter-linked in
space and time with higher level plans at the block and district
levels.

5.0 Rapid Appraisal Technique (RRA) to help initiate development in

the village
To have a detailed plan for the village development as
outlined above, though simpler and easier than the conventional planning
approach is still difficult and time consuming for the village. The technical
expertise of planning personnel is also not available.
But the
development process must go on as the elected parties should have an
agenda for action. It is proposed therefore to use the latest techniques.
Rapid Rural Appraisal (RRA) to identify core issues of development and
start the process. Other dimensions may be added on while moving
along with way. It is in this context that the development process as
conceptualised in the para 3 should be taken up as the starting action for
the village development.
6.0

Village Organisations

The importance of organisation can hardly be overemphasised specially in the rural context, where collective wisdom has
always been revered and is reflected in the philosophy of PanchParmeshwar. The potential human resources can be fully exploited only
through organisations of various types. The organised groups, not only
pursue their community interest, but also work as pressure group to keep
the democratic fabric of the community intact. The receptivity of the
organised group to development initiatives and help is enhanced
considerably. In fact setting up new organisations is the success mantra
of progressive villages, cited as examples, Pani Panchayat, Van
Panchayat, Mahila Manglal Dal, Yuwak Manch, and cooperatives get
mentioned quite often and their importance is well realised by the
villagers.

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The institution of Panchayati Raj is a formality enforced on

the village people from above. Some feel the need of an organisation of
their own, representing their perceptions and having a constitution of their
liking. The traditional value system, beliefs and idealism are the
backbone of village community. Such phrases and ideas as - Basuchaiv
Kutumbakam, Yatra Naryah Punjayante remnant tatra devath. Vidya
Dadati vinayam, Panch Parmeshwara, plain living and high thinking, love
of nature and respect of elders, etc. - are still very much part of the
village methods. It is this that makes villages `repositories of culture'.
Recognising the importance of this, it is suggested to have the following
community-based organisation within the village.
6.1

Committee of Elders

Elders are the custodians of village culture and, though

alienated in the new socio-political set-up, are well respected in the
community. Every village has some retired teachers, service men,
officers, and professionals, who are enlightened, competent and very
willing to contribute to the welfare of their community. This potential
resource available in the village itself, must be exploited and integrated
into the development process. They may be organised into a forum of
elderly people which could act as `House of Elders' to be elected
Panchayat, giving useful advice on all matters, development related. This
body may play an important role in evolving a policy perspective and
ensuring its continuity while the format Panchayat gets changed and
elected every five years. This way the elders shall also regain their
deserved place to respect in the society and continue contributing
immensely on development and culture fronts to their community.
6.2

Women and Youth Fora

Women and youth of the village may get organised to

contribute to their own group as well as to the development of the village
in general. The role of women has already been emphasised in the
constitutional amendments. They should contribute in the planning
process accordingly through their organisation. Youth's power and
potential as the most energetic and dynamic group may be harnessed in
many ways, including information gathering, extension works, literacy
and sanitation campaigns, arranging sports and cultural events etc.
6.3

Village Co-operatives

Farmers, vegetable growers, dairy and poultry owners and

various interest groups may form co-operative and benefit immensely
from them. Co-operative in some states like Gujarat and Maharshtra
have already shown the way. The help available from Government
departments. NGOs, banks etc. has made formation and functioning of
co-operatives simpler and easier for the villages.
162

7.0 Linkages for Development

Development being an inter-related process, forging of
linkages with concerned agencies, nodes and networks becomes
imperative. Villages in the present set-up are having three channels of
linkages.
(a)

The Planning and Development Channel links the village

Panchayat to Block Samity Zila Parishad and District Planning
Council (DPC) for development policies and programmes. The
much talked finance from the Central government and State
Finance Corporation also follows through the same channel.

(b)

Operational and Implementation Channel with government set-up

at district head-quarter and block head-quarter, may be further
strengthened to make technical and professional services
including planning, available to village Panchayats.

(c)

Functional and Business Linkage with Towns and Cities is the

conventional channel through which forward and backward
linkages with the higher order settlements are established. This
aspect of development is now fully recognised by the government
and is emphasised in the 74th Amendment (Government of India,
1992b).

8.0

Conclusion

After half a century of planning and rural development and

with the 73rd and 74th Amendments strengthening our heads, it is time for
serious planning in this area. Village people who are the main actors in
the process, should be organised into groups of elders, women, and
youths forming co-operatives to pursue development works. The helpers
and facilitators like government, non-government organisations, other
institutions and banks should now be more effective because of better
awareness, respectivity and involvement of the villagers. The tools,
technology, training, loans, infrastructure and management may be tailormade to suit any situation in the new environment of information
revolution and liberalisation.
With more organised, and motivated actors, better
equipped facilitators and new sophisticated tools, rural development in all
its dimensions may now be planned more professionally and more
effectively.

163

References
Government of India, (1992a) The Constitution (73rd) Amendment Act,
GOI, New Delhi.
Government of India, (1992b) The Constitution (74th) Amendment Act,
GOI, New Delhi.
Government of India, (1983) Report by National Commission on
Urbanisation, GOI, New Delhi.
Gupta R.C. (1992) Integrated District Development Plan for Solan District
Institute of Public Administration, Himachal Pradesh (mimeo).
Planning Commission (1984) Report of the Working Group on District
Planning Vol. 1 & 2, GOI, New Delhi.
Sahay B.N. (1995) The Planning Process - A Synoptic Review Paper
from National Workshop on Implication of Constitutional Amendments on
District Planning at S.PA., New Delhi.
Sharma S.K., Patel H.D., Basu S(1979) Rationale of Organic Growth of
Rural Settlements, Unpublished Thesis for M.Planning S.P.A., New Delhi.
Singh H.B. (1991) Cultural Context in Village Planning and Rural
Development in S.K.Chandoke (ed.) Human Habitation, Culture,
Environment Interface S.P.A., New Delhi.
Singh H.B. (1989) Panchayati Raj and Micro-habitat Planning-The
Effective Nexus for Grassroot Development, ITPI Journal, Vol. 18 No. 6
(139). pp.
Unni K.R. (1965) Social Considerations in Rural House Design SPA
Newsletter Vol. 5 No. 3. pp.

Source : Background Material, National Workshop on Implications

of the 73rd and 74th Constitutional Amendment Acts on District
Planning and Development, School of Planning and Architecture,
New Delhi.
164

SPATIAL PLANNING

R.P.MISRA

This chapter is designed to introduce the concept of spatial

planning. The need for this chapter arises from the fact that planning as
conceived and practised the world over has, until very recently, been
essentially sectoral. Most planning documents - he Five-Year Plans for
example - discuss the existing conditions of various sectors like
agriculture, industry, social services, etc., set certain objectives and
targets for development of each sector within a given period of time and
state the resources - financial and others - needed and earmarked for
achieving the objectives and targets.
A realistic planning should have three dimensions i.e.,
economic, social and spatial. It is not enough to say which sectors
should develop and to what extent. What is equally important to tell is
who benefits from the development to what extent? In other words,
planned development should lead not only to an improvement in the per
capita income measured in average terms but also to progressive
reduction in the disparities in per capita income of individuals and areas.
Wide differences in the earning capacities of urban and rural populations,
industrial and agricultural populations, and socially privileged and underprivileged populations must be progressively reduced.
More often than not, there is close association between low
productivity, traditional agriculture, poor health and education facilities,
low urbanization, poor accessibility to transportation and communication
network, poverty and so on. They together form a vicious circle. It is
also seen that such conditions are more prevalent in some areas and
regions than others. Such a situation gives rise to what is generally
known as social and spatial imbalances in national economy. Sectoral
planning in its traditional form emphasizes economic efficiency of
investment in a particular sector; the distributive aspects of investment
are of secondary importance. The task of spatial planning is to
emphasize the equity aspects of planning, without at the same time,
neglecting the efficiency aspects altogether. It measures returns to
investment both in economic and social terms.
The equity and distributive aspects of planning did not
receive the attention, they ought to have in the developing countries in
the early stages of planning largely because of the desire of these
countries to catch up with the developed countries in average per capita
income or GNP, as fast as possible, and the implicit assumption that
economic growth automatically benefits all the people in the long run.
Experience of these countries, however, indicates that the conditions
under which the less-developed countries are developing their economics
165

are not the same or even similar under which the present day
economically advanced countries developed their economies. They now
realize that economic history does not repeat itself. In many countries,
notwithstanding the high rate of economic growth,disparities in income
and production capacities increased because modern technology and
production processes tended to favour those who had the intellectual,
organizational and financial capacity to utilize them best. Those who
were illiterates, had poor economic base and were also in adapting
themselves to the changing circumstances and modern methods
benefited least.
Had such under-privileged people been few, the developing
countries could ignore them. They could have rationalized this by saying :
`the society must pay for economic growth'. It, however, so happens that
such people form a large group in the development countries. In some
countries they form a great majority; in Iran they constitute about 50 per
cent of the total population. If this group is ignored and not taken care of
by planners, national development would have no meaning to them. A
small minority would reap the fruits of development; economic differences
would widen; social tensions would increase; and the orderly
development of the national economy would be jeopardized. It is,
therefore, important that planning should aim at not only rapid economic
growth by also better distribution of the fruits of economic growth interpersonally as well as inter-regionally and areally.
Disparities in socio-economic development manifest
themselves in two ways: inter-personal and inter-regional (or inter-areal).
More often than not, it is, however, seen that the two go together. The
inhabitants of the poorer areas are relatively poorer than those of the
richer areas when we measure their incomes in average terms. It is,
however, true that even in the poorer or richer areas, there are interpersonal disparities in income and earning capacities.
Spatial Organization
To understand spatial planning, one should first understand
the spatial organization of national economy and human activities.
Spatial organization means the order in which a given set of activities are
organized in space. We see this organization when we fly at an altitude
of say 30,000 feet. From that elevation, we see a number of nodes
(cities, towns, villages, etc.) - urban and rural settlements. These nodes
are linked with each other by a network of communication lines radiating
from the nodes. The network consist of railways, highways, etc. If we flay
at a still lower level, we observe more details of the nodes and networks.
The larger nodes specialize in activities which are not space consuming
factors, i.e., commercial establishments, etc. The small nodes specialize
in space consuming activities such as agriculture.
166

The intermediate nodes, such as small towns, have a mixed

activity pattern. We also notice that network linkages weaken as the size
of nodes decreases so much so that some of the tiny nodes inhabited by
a few people and located in resource-poor areas have no or extremely
poor linkages.
What binds the various sizes of nodes with each other is
the flow of people, goods and services through the network linkages.
Larger nodes attract goods consumed by the people such as food and
those consumed by industries such as raw materials. They, in return,
sent out finished products and a variety of other services to the smaller
nodes in their hinterland.
The interaction among the various sizes of nodes depends
largely on productive capacity of each node and the surplus of goods and
income they generate. The nodes which have no surplus have a very
small area of interaction. Those which have more surplus have relatively
larger area of interaction. This area of interaction of a node is often
referred to as hinterland or the zone of influence. When we refer to
interaction for social services, we can call it service area and when
referring to economic activities alone we can call it economic hinterland.
Urban geographers call it urban field.
The nodes and the activities associated with them and the
interaction among them through the networks are called spatial
organization. It must be noted here that the spatial organization as seen
at a particular time cannot be seen in the same state again. It is always
changing. Each birth of a baby, each investment in the factory or farm,
each improvement in communication and each new input in
transportation changes the organization.
These changes are not
perceptible to us at a particular moment of time because, taken
individually, they are minute. Cumulatively, they however, force the
spatial system to re-adjust itself to a new situation. New cities come into
being, villages are transformed into towns, many communities disappear,
small farms become large, crop patterns change, new communication
lines give a new pattern of linkages. All this happens in response to the
decision of the people to locate themselves and their activities at some
but not other places.
Spatial Structure
The arrangement of nodes and networks in space in
relation to each other is called spatial structure. Each country or region
has its own unique spatial structure. It has resulted from the past
decisions of individuals and governments. Economically developed
countries have another type; and those in between have a third type.
The typologies, however, not as simple as given above. In fact, one can
167

think of a continuum of spatial structures from highly polarized to highly

dispersed. Each country or region can be placed on this continuum and
categories could be made then.
A close study of this continum reveals that the highly
developed countries have evolved spatial structures which have many
similarities. The less-developed countries are also marked with a similar,
if not the same, spatial structure. It is not accidental. It happens
because of the inter-dependence between socio-economic development
and spatial structure. They are two sides of the same coin. For a
particular type and level of socio-economic development, there is a
particular type of spatial structure.
conclusions.

The above analysis leads us to some very significant

(a)

Planning has to be sectoral-cum-spatial so that a

disfunctional spatial structure does not hinder planned
growth of the economy;

(b)

Each country or region has to evolve its own organization

and structure of space to meet the specific goals and
objectives of planning; and

(c)

Developing countries with a highly polarized spatial

economy have to evolve a spatial structure which carries
the benefits of planned development also to those who
have been bypassed by history.

Spatial Planning
Spatial planning is the sum total of the concepts,
approaches, methods and techniques of evolving a desired spatial
organization and structure. It is often used as co-terminus with regional
planning. Theoretically speaking, the concepts of space are more
dynamic and open than the concepts of region. Space cuts across
regional boundaries. It is a process which is continuous, temporally,
vertically and horizontally. In practical terms, integrated regional planning
can be considered to be an important dimension of spatial planning.
Spatial planning is an exercise to determine the allocation of sectoral
resources in places and areas in a way that:
(a)

Sectoral investments give highest social and economic

returns and maximum support to each other,
168

(b)

Productive activities and social facilities are available to all

those who need and deserve,

(c)

Differences in incomes and welfare among the people and

areas are reduced, if not eliminated, and

(d)

A spatial structure conducive to planned development of the

country or region is evolved.

It may be recalled that spatial organizations and structures

of human activities are determined by the nodes, the networks and the
flows linking the nodes through the networks. The efficiency of the
spatial structures depends upon the location and density pattern of the
nodes, the shape and density of the networks, and the quantity, quality
and direction of the flows. The task of spatial planning is to analyze the
spatial structures, evaluate the efficiency against the needs of the
national and regional economies, and to generate structural changes to
meet the objectives of planned development.
How are the structural changes brought about? To answer
this question let us take a hypothetical example of a country which has
decided to invest rials 1,000 billion on health services to make these
services available to all the people. Let us also hypothesize that this
country has 10 urban centres and 1,000 small villages spread over in
space rather randomly. The economic condition of the rural population is
rather poor and is based on subsistence agriculture. The links between
the urban and rural places are weak which is apparent from a very
inefficient communication network development.
The linkages are
maintained by a set of intermediaries who collect the surplus rural
products in small bits at a subsistence price and transport the same to
the urban centres. They also carry the basic necessities of life produced
at the urban centres to the tiny villages and sell them at a predetermined
price.
Now the question is: How and where to invest the health
funds and in what form to carry the benefits of investment in health
services to the rural population? It is obvious that the health plan should
attempt to develop rural health centres with resident doctor and
supporting staff. Where should such health centres be built? It has to
be based on certain criteria of distance, doctor-population ratio, etc. The
health centre should be easily accessible to people. The spatial planner
develops distance norms or standards for each region of the country. He
also prescribes the number of health centres required to serve all or a
maximum number of people of the region. While prescribing these norms
or standards he would keep in view what is feasible given the constraints
in development in the region, then he would suggest the vertical linkage
169

between the health centres and better equipped hospitals so that

specialized medical advice can be secured and to which serious cases
can be sent. He may recommend that such higher medical centres
should be within, say 25 km from each health centre. He may further
recommend that there should be at least one large general and
specialized hospital at the apex of the hierarchy where chronic and ore
serious cases can be handled.
The spatial planner would thus tell: Where to locate these
various levels of health services? What norms or standards about
distance and population should be adopted? But his problems would not
be over with these. If it were only the question of health services, the
problem would have been easy. He has to carry out the same exercise
for so many other sectors simultaneously. For example, education
services, agricultural services, cultural services, economic activities and
so on. If he decides to locate each facility independent of the other, he
would be diffusing the resources at so many places, and would find it
difficult to evolve a spatial structure conductive to autonomous
development of regional economy. Further, he would create tremendous
strains on the time and resources of the people, so that the facilities
would remain unutilized or under-utilized and interactivity linkages which
create conditions for further development would not evolve.
Thus, one of the important tasks of spatial planning is to
integrate the spatially dual economies through successive locational
decisions leading to the development of a spatially balanced social and
economic structure. The second task is to identify the economic
activities, given the local, regional and national resources - physical,
human and financial - and needs which can be located at various places
selected to help fill the gaps in the settlement hierarchy and generate
greater flow of goods and services among the placed. And, thirdly,
spatial planning attempts to evolve a system of transportation and
communication network which facilitates the expected flow. And, finally,
spatial planning specifies the institutional infrastructure including
administrative and planning which can effectively implement the spatial
plan.
Problems in Spatial Planning for Rural Areas
The spatial organization of any
national economy
manifests a clear dichotomy between urban and rural areas. This is now
a well known phenomenon. Here, an attempt is made to enunciate
certain principles which underline the methodology and methods of
solving the problems emanating from such a situation.

170

Setting the Distance Standards

Locating a large industrial plant has now become an easier task as the
methods and techniques of locational analysis for such plants are now
well standardized. For the location of social services and non-exportoriented local economic activities and services, however, the industrial
location theories are of little use. For these activities one had to rely
heavily on the old theories of Von Thunen and Christaller which offer
general principles of location of agricultural activities1 and social
facilities.2
Taking these formulations as the base, we can say that the
services and activities which are basic to the people and which are to be
used most intensively should be located closest to the users' residential
placed. Those to be used less frequently should be located at some
longer distances.
For different services and activities, there should be
different distance standards. Establishing distance standards which are
realistic in the light of the local and regional conditions is an essential
step in spatial planning specially for the rural areas. This must be done
for every area or region to be planned with respect to each kind of
service or activity which is to figure in the planning.
Let us take the example of education. What is the range of
distance from which children can be drawn for primary schooling. One
may say that the school should be located where the children live. But,
what to do if the rural settlements are small and none of them can singly
provide enough children for the school? Or, if enough resources financial or human - are not available to provide a primary school for
every village? One of the several small villages would have to be
selected. If the school is so located that most of the children would have
to walk for, say, 10 km to reach it, it would not be efficient in social terms.
The objective is to provide primary education to every child within a
walking distance.
It is the goal of every developing country to provide primary
education to each child of school-going age without impairing the
effective functioning of the school, i.e., the school is viable. Let us say
that two km radius can be taken as a standard for primary school. If
possible, it should be less, but, barring very exceptional situations, it
should not exceed two km. Now we will call two km as the distance
standard for primary schools. We would then take up each activity and
set distance standards, remembering that within a given activity, say
education, we have to set distance standards for nursery, primary,
secondary, college, etc., levels, separately.
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The procedure for setting distance standards has to be

evolved by planners.
Setting Population Threshold Standards
Besides distance standard, a population standard has also
to be evolved. For each activity, there should be a minimum population
in its catchment area carved out by the distance standard. For example,
a primary school should have at least 100 children, i.e., 20 children in
each class. If we take 15 per cent of the population being in the age
group of 6 to 11, and if we assume that every child in the primary school
age group should or would attend school, there should be at least 800
persons in the catchment area of the school. The required population will
increase, as the strength of the school in terms of children enrolled
increases. Thus, we arrive at population standard.
Conflict between Distance and Population Standards
After distance and population standards are set for different
levels of each activity, the two should be empirically tested to determine
their applicability in different situations. Population density in some areas
or regions may be so low that sufficient number of people may not live
within the distance standard to make the offering of a particular service
feasible. Or, there may be too many people within the radius of the
standard distance. In such circumstances, necessary adjustments would
have to be made between the conflicting standards. The nature of this
compromise will depend on considerations such as future development
possibilities, transport impediments improvements, mobile service
availability, even on a selected basis, etc.
The conflict between distance and population standards
raises the question of equity versus efficiency in spatial planning. If
equity expressed as a maximum travel distance is the governing factor,
then the efficiency question is: What is the minimum number of places
required to put all places in the area of operation within that distance of a
centre and where should the services be located? If efficiency governs in
terms of minimum population base, then the equity question is : Where
should a given number of services be located so that the maximum level
distance from all the placed selected to the most remote villages they
serve is least but that around each place the minimum number of people
necessary to support the facilities are present? Spatial planner has to
resolve these conflicts.
Setting the Hierarchy of Services and Activities
Another problem needing attention in spatial planning is the
hierarchy of services and activities. Certain services are needed by the
172

people too frequently, for example, primary school, health clinic,

extension agent, grocery store, agricultural marketing, agricultural inputs,
etc., and some are not needed so frequently, such as specialized
hospitals, colleges, wholesale market, etc. When we set the distance
and population standards for various services and activities, we have to
keep the hierarchy of services and activities in view.
It is, therefore, important that the services and activities to
be located to meet the equity and efficiency criteria are classified and
standards for each class is worked out.
Each class of the educational service mentioned above
requires a separate set of standards. It should be emphasized here that
the classification mentioned above is illustrative. For each country and
region, different hierarchies would have to be worked out for each
service.
Determining the Hierarchy of Settlements
Another problem to be resolved in spatial planning is given
the standards and hierarchy of services, where to locate the services to
meet the standards? The methodology for settlement analysis and the
selection of places for locating various services and activities is not gone
in detail here. Suffice it is mention here that the hierarchy should be so
conceived that it integrates the national or regional space both vertically
and horizontally.
The hierarchy of settlements have to be matched with the
hierarchy of services and activities and vice versa before a spatial
development plan is prepared.
Making the Spatial Plan Dynamic
It has to be realized that planning and development are
dynamic processes. As population change, the standards or norms
change. As economy develops, better facilities may be needed. The
spatial plan should be so devised as to absorb changes. The service
centres selected for rural areas, for example, reflect the realities of the
present needs and constraints. It should correct the gaps in the present
structure, yet should provide a blue-print and guidelines for an evolving
system as resources permit its development. It should neither be a timebound plan nor a plan tied to rigid notions of ideal sets of distances and
populations. It should avoid the latter because of the impossibility of
constructing hierarchy of settlements that meet arbitrary distance
standards and because of the danger that, in attempting to meet such
standards, the suggested plan would appear unrealistic. It should not be
time-bound because it is unlikely that an ideal set of distances will remain
173

unchanged as a settlement system develops, mobility of population

changes, needs of the people change, new facilities are introduced, new
resources are available, etc. At any point of time, to be useful ideal
standards must themselves compromise between fundamental ideals
and ends that can realistically be achieved. They should, therefore,
change and the most that any service centre plan can offer is a range of
options from each village to centres that form the nuclei of ever larger
groups of places. The principal virtue of the plan is to ensure that all
villages are connected to a hierarchic system. So long as the process of
plan implementation proceeds in each area down the hierarchy from top
to bottom, the ultimate connection of every settlement to every facility
type is guaranteed.
Problems of Implementation
Implementation of a spatial plan is always problematic
specially because governmental machinery operates sectorally and coordination among sectoral departments is always difficult, if not
impossible. There is, however, one welcome feature in governmental
organization which lays greater emphasis on spatial integration and
location of sectoral investments. It is the political organization.
The elected representatives of the people represent areas
and regions, and not the sectors. Since the political institutions parliament, councils and municipalities - set the policies and goals and
are often in the position to over-ride the sectoral bureaucracies, there is
every change of a well formulated spatial plan being implemented.
Further, even the administrative machinery cannot remain for long
insensitive to the policies laid down by the policy-making bodies, like the
parliament in India. It is in response to this `political pressure' that the
concept of integrated area and regional development catches the
attention of the administrative machinery in every country.
Innovations take time to be adopted and to percolate down.
Every system tends to stabilize itself because system in continuous
change is painful to many. From the changes in the attitude of the
administrators in India, seen during the past few years, one can foresee a
major breakthrough in planning mechanism and organization in not too
distant a future leading to better appreciation of the spatial planning
process.

174

References
1.

Von Thunen, Der Isolierte Staate.

2.

W.Christaller, (1966). Die Zentralen Orte in Suddeutschland, Jena

Fisher 1933; translated by C.Baskin as The Central Places of
Southern Germany, Englewood Cliffs: Prentice-Hall.

Source: District Planning A Handbook R.P.Misra (Editor) Concept

Publishing Company, New Delhi.

175

GLIMPSES OF DECENTRALISED PLANNING IN KERALA

-

Arun Ghosh

A brief (eight-day) visit-across six districts - in Kerala

recently, was a fascinating experience worth sharing with a discerning
readership. Personally, it was a boneshaking experience, involving a ten
to 11-hour car drive every day; but the trouble was much more than
rapid. English Interpreters helped overcome the language (Malayalam)
problem.
The visit, extending over a dozen Gram Panchayats (some
quite remote) a couple of Block-level Panchayats, and a few
municipalities - was an eye-opener. The devolution of 40 per cent of plan
funds by the Kerala State Government to the local Panchayats seems to
have worked wonders. There was great enthusiasm among the people.
As a result, one also found the resources significantly augmented
(locally) through voluntary contributions, principally by way of free labour.
The quick results of the first "devolution" exercise is by all means
outstanding to an outsider. It is a process which needs to be described in
greater detail than possible here.
Some background would be necessary.
Having first
attempted to introduce decentralised planning in West Bengal (as far
back as 1985-86, as Vice-Chairman of the West Bengal State Planning
Board), I was amazed to find that people's participation in the task of
local area planning in Kerala was perhaps a shade better than it is in
West Bengal - except in a few districts. This holds good even today,
since 13 years of decentralised planning. There are, of course, several
explanations. An important one being sound basic education in Kerala.
Another explanation could be that for a few years, the State government
in West Bengal did not devolve any significant funds from the State to the
local Panchayats which primarily relied on the funds received for Central
government sponsored schemes (like the JRY). This has dampened the
initial enthusiasm of those who spent their time and energy in "mapping"
resources and in drawing up plans to solve the most urgent "needs" of
the people. But that lacuna has now been corrected in West Bengal
where devolution exceeds 50 per cent; so the level of education and
awareness among the people may be the only main reason for the
relatively more effective results one saw in Kerala.
That Kerala people are politically conscious, was obvious
from the very commencement of my hastly organised tour. But then,
West Bengal is no less politicised; and when it comes to brass tacks, lack
of education does not prevent people in general either from articulating
their most urgent needs or from undertaking the required tasks, once
they are empowered to do so.
176

But rather than discussing generally, let us take a look at

"decentralised planning" in Kerala.
In several of the Gram Panchayats,one found a series of
"maps" - "resource maps" as it were - of the Gram Panchayat area, which
brought out in visual form the extant pattern of land use, the problems,
the potential, with the projects/programme proposed for 1998-99. The
"maps" - help in a significant way to identify the priority needs of each
area. The Gram Panchayat project/programmes are required to be
vetted by the Block Panchayats, and then forwarded to the State
Planning Board for approval. Since the devolution started from 1997-98,
in November 1998, (when the writer visited the Panchayat Bodies), the
1998-99 programme was yet to be approved at the State level, which
implies a somewhat lagged implementation of the projects/programmes.
Hopefully, this lag can be quickly reduced.
To my great surprise and concern, I found the most
pressing problem in most of the villages was shortage of drinking water,
and the problem was almost universal, though most acute in the hilly
areas. In the higher regions. And predictably, this problem was given the
greatest importance. I saw innumerable wells sunk by the Gram
Panchayats everywhere, with pumping facilities for storing the water in
water tanks, either located high up in the hills or merely raised by iron
girders; and during the summer season, (between the months of March
and May), the water supply is still required to be "rationed" for each
family. In varying amount daily. Essentially, this implies: (a) community
control over groundwater resources - something which needs to be
replicated throughout the country - and (b) its allocation as between
irrigation needs and drinking water purposes, and its equitable
distribution.
Incidentally, there was no problem of water supply shortage
in November, when I visited Kerala. This year, the monsoon has been
both heavy and prolonged. Yet, the supply of drinking water, in many
villages, was still available from a few taps.
Frankly, the problem of drinking water shortage in Kerala hit
me as odd. Perhaps, the pressure of population is one factor. Perhaps,
today's situation is the result of long years of neglect of the problem of
making proper use of surface water. Construction work on a small dam
on a river, approved three years ago, was still to even begin; its approved
cost (in 1995) was Rs. three crore; but the State PWD has its own
priorities. (That is a universal problem; and that in turn underscores the
importance of decentralised planning).
Kerala is not short of water supply. It is today a garden
state - a land of coconut groves and banana plantations and paddy fields,
177

and some rubber plantations which presently are most uneconomic.

Increasingly, paddy fields are getting converted to coconut or banana
groves, for paddy cultivation requires a lot of labour, and wages are high.
The Gram Panchayats are focussing on both groundwater use, and a
reconversion to paddy cultivation. There remains a long-term problem
though; the drawal of groundwater should not exceed the annual
recharge; and secondly, in hilly terrain, there is always some sub-soil
movement of water away from high ground to lower levels. That requires
block-level planning; and one saw several attempts at such block-level
planning of water supply. But, land in Kerala is both scarce and high
priced; and there are limits to what even "block" level panchayats can
achieve in this regard. The problem needs greater though, and statelevel planning going simultaneous power and water supply.
The work being done by the Panchayats - at both village
and town levels - is threefold. They are required (under State guidelines)
to spend 40 percent of the Plan funds for "production"; 30 percent for
services (such as housing and uplift of the poor); and 30 percent
infrastructure. I was personally delighted to see that some Gram
Panchayats had departed significantly from these norms, and that these with specific projects clearly identified - had been approved at both the
Block-level and the State level.
Norms are necessary; departures from norms must also be
clearly justified.
The procedure for approval of "projects' and
programmes is quite strict. At Block level, each project is adjudged in
terms of its "costs" and "returns"; and the Approval Committee includes
finance expert and a cost expert. The actual cost incurred has, in many
cases,been found to be much less than sanctioned because of the
supply of voluntary labour. The "services sector" includes subsidies (for
housing, for education and health facilities, etc.), especially for the poor,
the Scheduled Castes and Tribes people; and they are given on the
basis of "income norms"; and the lists of beneficiaries are widely
publicised. That ensures that "fake" subsidies are eliminated at the Gram
Sabha level; since in a village, there are few secrets as to the real state
of living standards of different families.
Three things that impressed me most were; (a) the "scientific" way in
which local level planning was being instituted - I saw Land Use board
officials help train villagers in drawing up and filling in diverse types of
resource (and contour) maps of the villages; (b) the extend of "voluntary"
help that villagers had put in, their free labour hours in each project being
quantified (and in some areas, the free labour being almost as much as
the State-level grant; and (c) the concept of "rural communities" being
made in charge of local problems. The latter was very frequent
occurrence in distant (highland) villages. Clusters of 25 to 50 households
were identified; these "community" level organisations took the initiative
178

to solve all local problems (including not only the water problems of some
families, the schooling of children but also minor disputes between
neighbours). There are weekly or fortnightly meetings of these village
communities; and quite apart from the fact that they made the presence
of State police forces and legal bodies unnecessary in these
communities, they also helped to improve social relations within these
communities.
In one town, I saw a hospital taken over by a municipality from the State
government; and though I cannot vouchsafe for the past, I can
vouchsafe now for its immense superiority in both cleanliness and the
"services rendered" to any government hospital in the capital.
I have avoided giving names of the Gram
Panchayats/municipalities; also, I have avoided mentioning some of the
problems I saw. (In one area, for instance, there was a complaint that
contractors were still being awarded jobs, instead of the local
unemployed labour). Yet, on an overall basis, what I saw in the districts
of Thiruvananthapuram, kozhikode, Thrissoor, Malappuram, Palakkad
and Kottayam were exhilarating.
It is not as if there are no problems. There exist many
problems; and in this note, we have refrained from going into them (which
should form part of amore exhaustive study). The main purpose of this
article is two-fold. First, this in an unbiased view of an outsider - with
some personal experience of decentralised planning - of the undoubted
success of the experiment in Kerala within a very brief period. Secondly,
more and more States should learn, may be in their own way (for
conditions in each state very significantly), to "empower" local people to
look after their own immediate interests. That should be one of the first
tasks of all governments, no matter which political party comes to power,
for that is the surest way to ensure the permanence of democracy in this
large sub-continent.
Why not start with Jammu & Kashmir immediately, for
which Mohammad Shafi got an excellent enactment done by the J&K
House a few years ago?

Source: The Hindu (Dt. 16th May, 1999), New Delhi.

179

PLANNING PROCESS IN WEST BENGAL

- B.M. Sanyal
To trace the course of development of the planning process
in West Bengal we must go back to the pre-independence days. During
the British period some acts wee formulated by the rulers of the country
with the express aim of strengthening foreign rule. These acts were in no
way meant to enable local self-government establish itself in the country.
The first such act was the Bengal Chowkidari Act of 1870.
This was followed by the Bengal Local Self-Government Act of 1885.
This act resulted in the formation of district boards at the district level and
local boards at the sub-divisional level. Local boards were later on done
away with the Thana level union committees were formed. The Bengal
Village Self-Government Act was formulated in 1919 which resulted in
the creation of district boards and union boards. No further acts were
formulated prior to independence.
After independence Balwant Rai Mehta Committee Report
had far-reaching implications towards establishment of grassroots level
organisation and decentralised planning in the country. The committee
recommended that three-tier panchayat system would be suitable for the
country. Following its recommendations a four-tier Panchayat system
came into being in West Bengal. The two relevant acts were West
Bengal Panchayat Act, 1957 and the West Bengal Zilla Parishad Act of
1963. The four tiers were the gram panchayat at the village level, Anchal
Panchayat comprising a group of villages, the block level Anchalik
Parishad and Zilla Parishad at the district level. Only at the Gram
Panchayat level there was a provision for elections.
The three-tier Panchayat system which one finds in West
Bengal at present came into being after the West Bengal Panchayat At,
1973. Following this general elections for all the three tiers had been
held in 1978, 1983, 1988 and 1993. These three-tiers that now exist are
the Zilla Parishad at the district level, the Panchayat Samiti at the block
level and the Gram Panchayat at the village level.
The system of elections that was initiated for all the three
tiers ensured greater transparency within these organisations. Other
than these three bodies mentioned there are two other non-political
bodies at the lowest level below gram panchayat. These are the Gram
Sabha and the Gram Samsad.
Gram samsad is the lowest non-political body of the people
comprising all people in a single polling booth whereas gram sabha
comprises all voters.
180

The lowest elected body of the three-tier panchayat system

is the gram panchayat which has between five and twenty-five elected
members. The elected head of the Gram Panchayat (GP) is called
Pradhan. Local members of next higher body, Panchayat Samiti are exofficio members of the Gram Panchayat.
Just above the Gram
Panchayat is the Panchayat Samiti (PS) which is the people's elected
body at the block level. It has under its jurisdiction a number of Gram
Panchayats. The elected members of the PS come from the different
grams under its block where a gram as notified by the government
comprises a single or a group of mouzas. One gram can send at most
three elected representatives of the PS. The ex-officio members of the
PS comprise pradhans of the GPs under the PS, local members of the
Zilla Parishad excluding Sabhadhipati and Sahakar Sabhadhipati and
also local MLAs and MPs. The chief of the PS is called Sabhapati. He is
the elected head. The executive officer of the PS is BDO while the
Extension Officer of the Panchayat (EOP) is the secretary. Again
services of all staff working for the block have been placed at the
disposal of the PS. The highest body of the three-tier Panchayat System,
i.e., the body at the district level is the Zilla Parishad (ZP). The ZP
constitutes elected members where each block (PS) sends two members
to constitute it. District MLAs and MPs and Sabhapatis of the Panchayat
Samitis falling under a particular district constitute the ex-officio members
of the ZP. The elected head of the ZP is called Sabhadhipati while the
district magistrate of the district is the executive officer. An officer of
additional district magistrate's rank is same as additional executive officer
and an officer of the state civil service has the role of a secretary.
Technical persons like executive engineers, assistant engineers, etc.
work with the ZP.
This is the overall structure though it is debatable whether
this structure at all exists and if so, how efficiently it functions in the state
in the task of formulating a decentralised plan. We will discuss later how
in spite of giving people's organisations the power to spend funds after
the 73rd and 74th Amendments of the Constitution there still remains
coordination problems between Panchayat members and administrative
and/or the department offices. The overall control of development
activities has been given to the people by giving the Sabhadhipati of the
Zilla Parishad the status of minister-of-state. He is also the chairman of
the district planning committee ( the executive and planning body for the
district with statutory powers) as well as various other committees
through which the panchayat system functions.
level.

A somewhat similar structure is also found at the block

181

The Panchayat System of the Panchayati Raj Institutions

functions (formulation, execution of plans, etc.) through ten permanent
committees both at Zilla (district) and Panchayat Samiti (block) levels.
These committees are called Sthayee Samitis. The ten Sthayee Samitis
are:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

artha, sanstha unnayan-o-parikalpana (finance, establishment,

development and planning)
Janaswasthya-o-paribesh (public health and environment)
Purta Karya-o-paribahan (pubic works and transport)
Krishi, sech-o-samabay (agriculture, irrigation and cooperative)
Shiksha, sanskriti, tathya-o-kriya (education, culture, information
and sports)
Khudra silpa, tran-o-janakalyan (small industry, relief and welfare)
Bon-o-bhumi sanskar (forest and land reforms)
Matsya-o-prani sampad bikash (fish and animal resources
development)
Khadya-o-sarbaraha (food and supplies)
Bidyut-o-archiracharit shakti (power and non-conventional energy)

The chairman of a standing committee is called

Karmadhyaksha. He is elected from amongst the members. However, in
case of finance, establishment, development and planning the
Sabhadhipati/Sabhapati is the chairman ex-officio.
The standing committees have ex-officio members,
nominated members and elected members. In case of the committees at
the ZP level and ex-officio members are the Sabhadhipati and Sahakari
Sabhadhipati while for the standing committees at the PS level Sabhapati
and Sahakari Sabhapati are the ex-officio members. The elected
members, between three and five in numbers, are selected from the
members of the ZP and PS. Government officers, eminent persons with
specialized knowledge and such other individuals are the nominated
members of the committees and they are selected by the state
government.
So it is clear that these ten committees are the most
important bodies as far as planning and other functions of a panchayat
are concerned. With decentralised planning making some headway in
this country and getting a further boost after the 73rd and 74th
Amendments of the Constitution, the powers and functions of the
Panchayats in the villages and municipalities in cities and towns have
increased. The above two acts have spelt out a number of areas (29 for
panchyats and 18 for municipalities), the planning functions relating to
which will be under the jurisdiction of these local bodies. Moreover, the
73rd and 74th Amendments of the Constitution have directed that the
State Finance Commissions be set-up in each state which would suggest
182

ways and means for delegating financial powers to Panchayats and

municipalities and would recommend devolution of resources from the
state level to the local levels. In West Bengal a SFC has been constituted
and it has already submitted its report and recommendations which have
been heartily accepted by the cabinet. However, no attempts have been
as yet made to put these recommendations into practice. Out of the 29
items suggested by the 73rd Constitution Amendment over which
panchayats have total financial and planning jurisdiction, 17 have been
accepted by the West Bengal Cabinet. According to section 207B
(amended in 1994) of the West Bengal Panchayat Act, 1973 the state
government may transfer any or all of these 17 items mentioned below to
panchayats:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
xvi)
xvii)

Agriculture including marketing and food processing

Irrigation, minor irrigation and water management
Animal resource development
Health and family welfare
Public health, engineering and rural water supply
Social welfare
Land and land reforms, land improvement
Cooperative
Khadi, cottage and small-scale industries
Rural housing
Pubic works and communication
Education
Fisheries
Social and farm forestry
Rural electrification
Poverty alleviation programme
Public distribution system

That this state is slowly moving towards decentralisation is

clear from the fact that many of the above functions have been and are
being handed to the Panchayats. However, maximum decentralisation
has occurred in centrally sponsored projects like JRY, IRDP, RWS, etc.
have been clubbed together and renamed as Swarna Jayati Rozgar
Yojana, and all wage-employment schemes like JRY etc have been
renamed as gram Samriddhi Yojana. Execution of these projects has
been handed over only to panchayats, but lower bodies have been mere
implementers and spenders of government money. No feedback from
them regarding local conditions and aspirations of the people have been
thought necessary.
The following is a summary of recommendations made by
the SFC. It is followed by an item-wise note on the decision of the cabinet
regarding individual recommendations, whether it is accepted, rejected
or is under consideration.
183

SUMMARY OF RECOMMENDATIONS
1.
Local Self-Government (LSG) institutions will not be able to
discharge their responsibilities without adequate funds and staff. As
things stand now, they will have to depend heavily on grants-in-aid and
sharing of taxes with the state government and on the continuation of
grants from the union government through poverty alleviation and other
schemes. This report has suggested ways to give the local bodies more
powers.
Grants-in-Aid
2.

Over the past decades, the proportion of plan expenditure for

districts has increased and with further decentralisation, this share
will go up. A substantial part of this should be entitlements to the
local bodies in the form of united funds and the rest will continue to
be grants.

3.

Our proposals on modification of some grants to municipalities

need mentioning. In spite of entry tax, a surcharge on sales tax
has been introduced. As promised, the state government should
distribute the fund to the municipalities as grants in the same
manner as done so far with money from the entry tax. State
grants on parts of collection of profession tax and motor vehicles
tax to LSGs may be discontinued.

4.

Since price rises are not within the control of the municipalities
D.A. subventions to them should cover the whole of the D.A.
liability in respect of approved staff. Further, since various
benefits to the staff have been introduced at the instance of the
state government, it should cover such expenses with grants.

5.

A large number of centrally sponsored programmes such as JRY,

IRDP, ARWSP, etc. are now in operation in which the central
releases have to be matched by proportionate state releases.
Such state and central releases would continue to be grants and
will not be part of the untied entitlement of the local body
concerned.

Tax Sharing
6.

Entitlements will be financed by sharing of taxes. In lieu of sharing

individual taxes, 16 per cent of the net proceeds of all tax collected
by the state in a year should be transferred to local bodies. These
184

will be untied funds at the disposal of the local bodies. Such funds
may be released to districts in suitable installments, quarterly or
monthly.
Devolution of Taxes
7.

Taxes on entertainments, now collected by the state, should be

handed over the local bodies.

8.

Urban land tax and multi-stored building tax should be handed

over to Calcutta Municipal Corporation.

9.

Collection of irrigation rates along with the related responsibility of

water management and routine maintenance be handed over the
concerned Zilla Parishads.

10.

Resources generated in a regulated market should be brought

within the purview of DPCs and the net proceeds ploughed back in
the market hinterlands.

Own Incomes of LSGs

11.

The West Bengal Panchayat Act has empowered the three tiers of
Panchayats to raise taxes, levies and tolls from a wide range of
fields. These efforts should be stepped up.

12.

Fiscal power of LSGs have been set forth in various legislations,

but further spread is necessary. Rules have to be framed and
clarifications to be given in some cases.

13.

Periodical assessment by the Central Valuation Board (CVB)

should be made mandatory and the CVB strengthened adequately
for this purpose.

14.

The state should take up with the Union Government for timely
payment of service charges for Union Government properties.

15.

Municipalities should be empowered to issue trade licences with

fees at a much higher level; to impose tools at higher rates for
heavy vehicles on municipal roads; to impose levy on
tourists/pilgrims; to impose water tax on large users and
commercial and industrial undertakings; to introduce special
conservancy
charges
for
commercial
and
industrial
establishments.
185

16.

There is considerable scope for increasing non-tax revenues.

17.

Voluntary contributions have been made a notable feature in the

development activities of the panchayats and this should be
encouraged to garner more resources as well as to enhance
people's participation. Municipal boards may also try to involve
the people to improve urban facilities.

18.

Incentive schemes have been suggested to encourage

panchayats and municipalities to increase their own incomes. Two
percent of entitlement due to a district will be set aside to operate
an incentive fund.

Adjustments in District Organisation

19.

Transferring of a few hundred crores of rupees to district as

entitlements will inevitably affect the present organisational set-up.
Supervision of the departmental staff, remittances of non-plan
expenditure to districts and breakdowns in the state budget will
have a new look.

20.

Tax collection in the state should also adopt a new approach. The
state tax collecting officials will work in cooperation with LSG
functionaries. The existing Decentralised Resource Mobilisation
Scheme will no longer be necessary but the existing incentive
scheme for small savings should continue.

Planning
21.

District Planning Committee (DPC) has now been given

constitutional status. In this state for nearly a decade planning
committees were functioning at the district level. But the planning
process needs to be much more comprehensive. Also the process
should start at the GP level and move upwards with appropriate
modifications at upper levels including the State Planning Board.

District set-up
22.

The three tiers of panchayats and municipalities will get money

from three sources, own income including donations, entitlements
and grants from the state and the centre. The first two sources
are untied and local bodies will be free to spend them according to
their chosen priorities.
186

23.

The projects formulated by GPs will be usually small and

technically simple which maybe executed with local expertise.
Larger schemes will have to be vested with the PS.

24.

Maintenance of assets created so far in blocks will be the prime

responsibility of PSs.
They will also have assigned
responsibilities.

25.

ZPs will have a greater scope to create new assets and to

concentrate on more complex types of maintenance. Besides, as
the apex body in a district, it will have various coordinating
responsibilities.

26.

Maintenance and development in towns will be done by municipal

authorities with the help, when necessary, from the ZP and the
state.

27.

A few districts have some inhabited areas which are outside the
jurisdiction of panchayats and municipalities. These have been
termed as special areas in this report. These areas will also be
allotted funds in proportion to their population and the earmarked
funds will be operated in consultation with the DPC.

28.

There are development boards in a few districts besides the

panchayats. Funds for their operations will come from the state
and not from the entitlements of local bodies.

Distribution of Entitlement Funds Amongst LSGs

29.

The entitlements suggested in this report do not depend on

accretion of additional funds but are only a redeployment of funds
which are now being spent in the districts. Instead of basing the
distribution on population sizes only a few factors indicating
backwardness have also been taken in account, so that backward
localities may get proportionately more money. The selection of
indicators depends on the availability of reliable data. The
entitlements in the tables have been given in percentages.

30.

For distribution among districts the factors taken were population,

level of non-literacy, proportion of backward population, area of
the district, proportion of rural population and inverse ratio of per
capita bank deposits and of working capital of primary agricultural
cooperatives taken together.
Within a district its allocation should be divided among
panchayats, municipalities and special areas on the basis of
respective total population.

31.

187

32.

The distribution among municipalities has been based on certain

factors like population, level of non-literacy, proportion of SC/ST
population and population density.

33.

Of the total entitlements going to panchayats the proportional

allocations among three tiers are : ZP-30 percent, all PSs put
together-20 percent, all GPs put together-50 percent.

34.

The distribution among GPs has been made on the basis of

population, level of non-literacy and proportion of SC/ST
population.
The distribution among PSs has been based on the same three
factors as in case of GPs.

35.
36.

Due to the special constitutional status of DGHC, the commission

has not earmarked its entitlements further amongst municipalities,
panchayats, etc. For Siliguri sub-division, the Siliguri Mahakuma
Parishad has been playing the role of the ZP and has been treated
accordingly.

Other Points
37.

The Tenth Finance Commission has recommended certain grants

for the local bodies of the state over and above the devolution
recommended by the State Finance Commission. Such additions
should flow to the districts so as to be available for use by the local
bodies.

38.

Works under the state plan sector and district plan sector should
be clearly listed by the state government.

39.

Departmental maintenance budget should be disaggregated

district-wise and communicated to the districts. DPCs should be
involved in supervising maintenance works.

40.

In the proposed new set-up, the burden of work of Sabhadhipati,

Shakari Sabhadhipati and executive officer will increase
considerably. Sharing of work with chairpersons of standing
committees will be essential. Similar distribution of work in lower
rungs will also be necessary. Cooperation of departmental staff
will also have to be mobilised.

188

41.

Block level staff of different departments have already been placed

under concerned PSs. However, some confusion is still prevailing
over deployment of such staff and this should be resolved
immediately.

42.

The question of regularising excess staff in municipalities was

examined according to certain norms by the Second Municipal
Finance Commission. The state government should examine the
recommendations and take a final view.

43.

Auditing of incomes and expenditures is a must for health running

of local bodies. Suitable and adequate number of persons from
existing employees in the district should be selected for the job
who will be fully engaged in this work. No additional recruitment
should be necessary.

44.

There should be some effective penal provisions for local bodies

not falling in line with financial discipline. Penal measures are also
to be introduced for those municipalities which divert development
grants to meet revenue expenditure.

45.

A new standing committee (Sthayee Samiti) may be created in

each ZP to help develop favourable milieu for small-scale and
large industrial units.
EXPLANATORY MEMORANDUM AS TO
THE ACTION TAKEN ON THE
RECOMMENDATIONS MADE BY
THE WEST BENGAL FINANCE
COMMISSION IN ITS REPORT SUBMITTED
TO THE GOVERNMENT
ON NOVEMBER 27,1995

1.

The report of the West Bengal Finance Commission (hereinafter

referred to as the Commission) constituted under Notification No.
1023-FB dated the 30th May, 1994 together with the Explanatory
Memorandum on the action taken on the recommendations of the
Commission is being laid on the table of the House in Pursuance
of Article 243-I(4) and Article 243-Y(2) of the Constitution of India.
The summary of the recommendations of the Commission relating
to devolution of state taxes, grants-in-aid and other matters is
contained in Chapter 7 of the Report of the Report of the
Commission. Along with the summary of the recommendations.
Chapter 7 of the Report also contains some observations of the
Commission.
The decisions of the Government on the
recommendations of the Commission are indicated in the following
paragraphs.
189

2.

Grants-in-aid

Recommendation 2: This has been accepted by the Government.

Recommendation 3 : Surcharge is a part of sales tax and sales tax
including surcharge is to be taken into account for the determination of
entitlements as per recommendation 7.07. As such distribution of
surcharge on sales tax separately to the municipalities is not necessary,
the recommendation that state grants in lieu of collection of profession
tax and as assignment of part of Motor Vehicles Tax to local bodies may
be discontinued has been accepted by the Government.
Recommendation 4: The Government has accepted the recommendation
in respect of approved staff subject to review in due course on receipt of
the recommendations of the 4th Pay Commission.
Recommendation 5 : The Government has accepted the
recommendation subject to the decision that may be taken by the
Government of India on the question of transfer of Centrally Sponsored
and Central Sector Schemes to State Government.
3. Tax Sharing
Recommendation 7 : The principle that entitlement of local bodies should
be financed by sharing of taxes has been accepted by the Government.
But this has to be related to recommendation s7.39 and 7.40, i.e. clear
listing of the works under the State Plan Sector and District Plan Sector
and district-wise disaggregation of departmental maintenance budget for
which detailed exercise is being done in consultation with Administrative
Departments.
4. Devolution of Taxes
Recommendation 8 : This is being examined.
Recommendations 9 to 11 : These recommendations have been
accepted by the Government.
5. Own Incomes of LSGs
Recommendations 12 to 19 : The Government has accepted these
recommendations in principle. The details are being worked out.

190

6. Adjustments in District Organisation, Planning and District setup

Recommendations 20 to 29 : The Government has already accepted this
approach in general. Details will be worked out in due course.
7. Distribution of Entitlement Funds Amongst LSGs
Recommendations 30 to 37 : The Government has accepted these
recommendations.
8. Other Points
Recommendation
recommendation.

38

The

Government

has

accepted

this

Recommendations 39 and 40 : These have already been dealt with.

Recommendations 41 and 42 : The Government will take a view as
recommended, while undertaking the exercise for implementation of
recommendations 7.39 and 7.40.
Recommendations 43 to 46 : These will be considered in due course.
Where implementation of any recommendation of the
Commission as accepted by the Government requires enactment of a
law by the State Legislature, necessary action for introduction of such
legislation will be taken in due course.
An important step towards decentralisation of planning,
powers and functions was taken in this state by forming the District
Planning Committee (DPC) and the Block Planning Committee (BPC).
The DPC and BPC were formed in 1985-86 with the Sabhadhipati of the
ZP as the leader of DPC and Sabhapati of the PS as the leader of BPC.
The members of the BPC are like department officers at block level,
Pradhans of GPS and Karmadhyakshas at PS level. The BDO is the
member-secretary. Similarly, DM is the member-secretary of DPC and it
is constituted of Sabhapatis of Panchayat Samitis, chairpersons of
municipalities, district level line-department officers and Karmadhyakshas
at ZP level. However, only recently the DPC was made statutory through
the West Bengal District Planning Committee Act, 1994 with far-reaching
implications for decentralised planning in this state.
The methodology of decentralised planning followed
presently starts with informing each districts of the budget allocations of
different departments for that district. The sum total of these allocations
for a district is called the district divisible pool. The DPCs then have to
prepare the district's plan on the basis of this district divisible pool.
191

Utilising the various committees the districts prepared their plans and
similar actions were undertaken at lower levels like block/municipality. A
system of prioritisation of needs elicited from people at grassroots level is
supposed to be used to formulate plans at the lowest level and in a
bottom-up manner these plans will be sent to the next higher level till all
such individual micro-plans accumulate (after prioritisation) to give rise to
the total district plan. In West Bengal we have only managed to achieve
this; though we are much ahead of other states. If the expenditure can
be cited as a measure of decentralised planning then the following
statistics can be cited:
District Divisible Pool
Year
1987-88
1987-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98

Budget allocation for

districts
(In lakhs)
34262.39
41495.31
52984.66
65538.90
76087.07
82234.44
91809.00
101251.16
117583.96
154429.82
1197729.01

Percentage
39.75
43.64
47.52
49.35
51.20
55.78
59.23
61.00
53.27
50.12
49.66

To ensure that planning is totally decentralised and bottomup in nature the West Bengal Panchayat Act, 1973, as amended during
1992-94, has some important sections, namely 16A, 16B and 17A which
state that GPs are to formulate plans and implement the same after
consultation and discussion with people at meetings of the two nonpolitical lowermost levels of the panchayat, namely Gram Samsad and
Gram Sabha.
Sections 16A and 17A state;
Every GP shall hold an annual meeting in May and a halfyearly meeting in November for each Gram Samsad for discussion on the
budget, draft plan and audit report of the GP. The GP shall, on collection
the information about Gram Samsad, place it before the Gram Sabha in
December for its deliberation and recommendations.
All these
recommendations are taken into account for the purpose of formulating
annual plan and deciding the mode of implementation of programmes.
The gram Samsad may act as guide and adviser to the GP in regard to
the schemes for economic and social development undertaken or
proposed to be undertaken.
192

As far as development planning for municipalities is

concerned the relevant act is the West Bengal Municipal Act, 1993. This
replaced the Bengal Municipal Act of 1932. An `area development'
concept had been introduced in the 1993 Act. This concept generally
deals with renewal of already developed areas and is silent regarding
taking up new areas for development.
The act of 1993 spells out that the government of this state
can declare an urban development region of a municipality which may
comprise municipal jurisdiction, as its urbanised growth area. The
municipality, it has been said in the Act, will prepare master plan for
upgrading of the human settlement within such region. Again the Act
states that the government of this state can constitute urban development
committees for any area or areas outside the municipal area for the
purpose of implementation of a master plan. The board of councillors of
the municipality shall have to consult the urban development committee
in all matters of preparation of a master plan and also its implementation
as far as they relate to areas outside municipal area. All planning and
development activities in an urban development region have to be carried
out under the overall supervision and control of the board of councillors of
the concerned municipality. Another important Act that will have some
bearing on the municipal planning taking shape in this state following 74th
Amendment of the Constitution is the West Bengal and Town and
Country (Planning and Development) Act, 1979. According to it a
planning area has to be declared with the urban and local bodies as the
planning authority which will prepare ODP and DDP following the
provisions of this Act. But with the introduction of the 1993 Act it seems
that the WBTAC ( Planning & Development) Act, 1979 will be restricted
only to Calcutta metropolitan area.
It is clear from a perusal of the two Acts specially in case of
the 74th Amendment that these are confusing and how municipal
planning will take place remains an open question. In this context it is
notable that no urban development region has been as yet declared in
this state so as a result no urban development committee could be
constituted or a master plan prepared.
The 74th Amendment was a bold step towards
decentralisation of municipal planning. A direct fallout of this amendment
in West Bengal was the West Bengal District Planning Committee Act,
1994 through which DPC was constituted. The main function of the DPC
is to formulate draft development plans for the district and metropolitan
areas. As per Article 243 ZD of the Constitution the DPC would be
consolidating plans prepared by the Panchayats and the municipalities in
the district and this provision is also embodied under Section 10 of the
West Bengal District Planning Committee Act. Similarly, as per Article
193

243 ZE of the Constitution, the Metropolitan Planning Committee would

also prepare plans for areas falling within its jurisdiction. This has also
been embodied in Section 3 of the Metropolitan Planning Committee Act,
1994. In case of the district (excluding metropolitan area) the system of
decentralized planning that will be followed is somewhat clear and has
been discussed before. However, for municipalities and for the district
(excluding municipalities) little progress has been made and a lot of
confusion exists. The WBDPC Act, 1994 says that each municipality is to
prepare annual plans and programmes of execution for five years. These
plans and programmes will be examined and finalised by the urban
developer's sub
-committee for consideration and inclusion in the draft
development plan for the districts by the DPC.
In a manner similar to the bottom-up planning set-up being
tried out by the panchayats, the municipalities have also had to create
ward committees as directed by the 74th Amendment to facilitate such
planning. The ward committees are the lowest formational constituents
or urban local bodies and have important responsibility in the field of
planning and execution. These responsibilities are either obligatory or
discretionary; they may be functions transferred by the state government.
Thus urban people, through the ward committees, can directly participate
in the planning process and thus the cause of decentralised planning will
be validated. The government of West Bengal has taken important
initiative in the formation of these ward committees and these steps have
made West Bengal an example among other states moving towards
decentralisation. In spite of such hopeful news the move towards
decentralisation of planning in urban local bodies falls far behind what
has been done in the Panchayats. The 74th Amendment has listed a
number of items that will be under the total jurisdiction of urban local
bodies and from which these bodies will have to raise resources and plan
execution. However, all this is yet to take off and presently the fund
raising method of urban local bodies is under consideration.
We can only wait and hope that a parity between urban and
village planning is reached in the near future and the overall tempo
towards decentralisation is maintained in good spirit aided by
spontaneous participation.
Source : Sanyal B.M., India : Decentralised Planning themes and
issues, Concept Publishing House 2001, New Delhi.

194

DECENTRALISED PLANNING AND PANCHAYATI RAJ

Report of Working Group in Tamil Nadu

- Mahi Pal
The concept of decentralised planning in India is as old as
planning itself. Several attempts were made in 1950s, 1960s and 1970s
to opertionalise it across the country. Although in some states model
district plans wee formulated, they could not be operationalised due to
non-existence of people's institutions at district or sub
-district levels. But
rd
th
the 73 and 74 amendments to the Constitution have created such
institutions in the form of panchayats and municipalities providing a
permanent structure for peoples participation in formulating the district
plan. Articles 243G and 243W of these Amendment Acts provide for
panchayats and municipalities to prepare plans for economic
development and social justice at their levels. Article 243 ZD of the 74th
amendment provides for Constitution of a district planning committee
(DPC) which will consolidate the plans prepared by panchayats and
municipalities and draft a development plan for the district as a whole.
Keeping in view the constitutional mandate to formulate the panchayat
and municipal plans and finally the district development plan, the State
Planning Commission of Tamil Nadu constituted a working group on
Decentralised Planning and Panchayati Raj in the context of the
preparation of the Ninth Five-Year Plan. This working group was headed
by K.V. Sundaram, noted development consultant, and consisted of 24
members and four special invitees, with the following terms of reference:
(1)

to review the status of decentralised district planning in the

state and suggest measures for improving its effectiveness;

(2)

to identify the scope and content of the district plan and

also to elaborate the procedure for implementation of
decentralised planning in the context of creation of a district
planning committee as envisaged in the 74th Constitution
Amendment Act and the Tamil Nadu Panchayats Act, 1994.

(3)

To suggest the methodology for integration of plans

prepared by village panchayats, district panchayats, urban
local bodies at the district level;

(4)

To suggest the methodology for integration of district level

plan with the state plan and sectoral plans;

(5)

To suggest suitable training programme for the officials

involved in the decentralised planning process and also for
the presidents/chairpersons of panchayat raj institutions;
and
195

(6)

To recommend measures to promote people's participation

in the planning process and involvement of NGOs in
formulation and implementation of schemes at the local
level.

The report of this working group is a comprehensive

document with 12 chapters discussing past efforts and the present
imperatives, devolution of functions and powers to panchayats,
operationalising the two-way planning process, planning at all tiers of
panchayats, planning for integrated rural and urban development,
training, administrative support, people's participation and financial
implications.
Before critically examining the various suggestions made in
the report a comment on the composition of the working group (WG) is
called for. Although the composition is quite comprehensive, it would
have been better if it also had representation of panchayat unions and
village panchayats.
The 11th schedule of the Constitution contains a list of 29
subjects to be handled by the panchayats. But inter-tier distribution of
these subjects has been left to the state legislature. This distribution
should be made keeping in view the cardinal principle that what could be
done at a particular level should be done at that level only. The WG was
aware of this principle as it itself has said that "functions must be
unambiguously stated, so that jurisdictional wrangles are avoided". For
inter-tier distribution of functions, the WG has endorsed the
recommendations of the state planning group on `Empowerment of
Powers to Rural Local Bodies' headed by L.C. Jain.
Although the Jain Committee had classified the functions
among the three tiers under four heads, viz, Planning, Implementation,
Supervision and Coordination, their mere mention could not have
enabled the panchayats to function as institutions of self-government as
the committee did not devolve anything worthwhile to the panchayats,
which they could plan, implement, supervise and coordinate. Besides, the
proposed inter-tier allocation of functions is under a number of subject
heads like agriculture, education, etc., including those that are performed
at more than one tier. This has introduced diarchy among the three tiers
of panchayats, which is injurious to their health. In a more meaningful
way, the allocation of educational functions was done in the Report of the
CABE, Committee on Decentralised Management of Education,
Government of India, Ministry of HRD, 1993. The Occasional Paper
published by the Ministry of Rural Development on "Powers and
Functions of PanchayatiRaj Institutions - A Framework' (1994) also
provides a meaningful framework in this regard.
196

Further, allocation of functions by an executive order as

was done by the state government is inadequate. An executive order
can be withdrawn easily. The right approach would have been to amend
the laws relating to the 29 subjects and include them in the state's
Panchayat Act. For example, agriculture including extension is listed as
a function of the panchayat, but if the State Agriculture Act does not
entrust the same to the panchayat through an amendment of the relevant
provision devolution of powers in respect of agriculture to the panchayat
means nothing.
V. Ramachandran (1994)
rightly observed
that,"merely entering th em as functions without corresponding
legislation on the subject does not empower the panchayats. Thus,
where statutory backing is necessary, subject matter laws should be
enacted and such laws, as well as existing ones as are relevant for the
functions of the panchayats, should empower them to exercise the
functions. Preferbly, the laws should specifically list the functions to be
devolved on local government." This approach should have been
recommended by the WG to enable the panchayats to functions as
institutions of self-government.
For transferring resources from the state to the local level,
the WG has suggested that area, population, degree of relative
backwardness, special locational and social characteristics and extent of
internal resource mobilisation may be taken into account. These criterias
are well taken. But besides these, one additional criterion the WG might
have included is that of women's backwardness because the women
have an entirely different set of problems. Their illiteracy, mortality rate,
intensity of poverty must be tackled differently and not by clubbing them
with the rest. Thus, women's social disabilities may be made a criterion
for resource allocation from the state to district and sub-district levels.
The WG's recommend
ation for giving responsibility for
allocation of funds between Panchayats and Urban Bodies to the DPC is
a practical proposition. The DPC at the district level in real sense
provides the their tier of governance and its empowerment in this manner
may help deliver the desired results.
The WG's recommendation to constitute the Village
Planning Forum (VPF) comprising all members of the village panchayat,
members of the Standing Committee or Committees constituted by the
Gram Sabha, selected elders, leaders and youth of the village is to be
welcomed. The forum may be assisted by the `makkal nalapaniyalargal'
(grassroots level worker) in its planning exercise. The Forum may
constitute various WGs for proper performance of its task. It seems that
the WG took this idea from the Gandhigram Rural Institute which helped
form such forums in the surrounding areas. The WG has also spelt out a
detailed planning methodology for preparing plans for economic
197

development and social justice at village level. But two comments are
perhaps in place on viability of the panchayat and the planning
machinery.
The demographic size of the village panchayat is very
important for determining the economic viability of the unit and
economising in various services rendered to the villagers. Reviewing of
the village boundaries for efficient working of the village unit with live
panchayats has been debated since initiation of the planning in India.
V.K.R.V. Rao expressed the view that a cluster of villages
with a population of about 5,000 should be the unit for integrated area
planning as it would ensure economic viability. The Ashok Mehta
Committee on Panchayati Raj (1978) also expressed the view that an
unsound resource of most of the panchayats base is mainly due to their
size. The L.M.Singhvi Committee (1986) also pointed out that "village
may be reorganised.. in order to make for more viable village panchayats
and enlarged villages should continue to be primary and homogeneous
units of self-government with a measure of direct democracy". This
committee also subscribed to the view expressed by the Ashok Mehta
Committee when it said that "the demographic size of the area is no
doubt relevant for effective transfer of technology, organisation of service
in respect of health, education, agriculture and industrial sectors and
other welfare activities". Against this background, let us see the position
in Tamil Nadu. As per the government of India document, Panchayat Raj
Institutions in India (1991), the average population per gram panchayat in
Tamil nadu was 3,837. It would have been better if the WG, keeping in
view the state's topography, had suggested to make it around 5,000 for
making panchayats economically viable which is indispensable for
decentralised planning based on the integrated area planning approach.
Second, the WG has said that makkal nalapaniyalargal may
assist the VPF in preparing the entire village plan. Since plan formulation
will be a comprehensive exercise a single official may not be able to
perform the task. It would have been better if the WG had suggested
strengthening of the planning machinery at the VP level because the plan
which will emanate from this level would be fitted in the block plan and
the block plan in turn would be made a part of the district plan. And
ultimately, the district panchayat plan would be integrated with the urban
plan at district planning committee level. Hence, the village plan should
be formulated meticulously.
Planning at Panchayat Union Level
The intermediate tier of the PR system is the sheet-anchor
of the entire rural development process. The WG has suggested that to
198

perform its tasks, in the sphere of planning the panchayat union (PU)
may set up a block planning committee (BPC), which may constitute the
required number of working groups or task forces for formulating suitable
project proposals. For preparing the plan at the panchayat union level
the WG has rightly said that the existing structure, i.e., one set of
personnel belonging to the block set up and another to a number of
departments operating at the block level having no horizontal linkages,
should be done away with as it has no relevance in the present context of
decentralised planning under panchayati raj. In place of the existing
practice, the WG has recommended that these two sets of staff should be
brought under the control of the chief block development officer for
effective coordination at this level. For formulating the plan the WG has
suggested creation a small cell consisting of an economist, a planner, a
geographer and a statistician.
There is no doubt that the above prescription would
strengthen the planning process at this level. But keeping in view the
work to be handled in the new environment, strengthening of the
accounting wing may also be appropriate.
The Tamil Nadu Panchayat Act provides for constituting food and
agriculture, industry and labour, pubic works, education and health and
welfare standing committees to enable the district panchayat (DP) to
exercise its powers, discharges its duties and perform the various
functions. The WG has rightly suggested constitution of a few working
committees comprising elected representatives of the district panchayat
and officials to examine the proposals received from the Pus, to decide
DP level schemes and to bring coordination among the schemes in the
sub-sectors, ensuring supplementary and complementary linkages.
For composition of the district planning machinery, the WG
has suggested a four member multidisciplinary team of technical officer
and training coordinators headed by the chief planning officer. The work
of this team would be supplemented and complemented by the technical
officers from the concerned sectoral departments and the
experts/specialists from various technical institutions and universities.
But it is not understandable why the WG has not recommended
strengthening of the budgetary and financial control mechanism at this
level as had been suggested by the G.V.K. Rao Committee in 1985. This
is necessary in view of the fact that the district planning machinery would
be entrusted with examining, suggesting, and guiding the sub-district
panchayats in formulating and implementing the decentralised plan at
their levels. Further, its importance would be enhanced because the WG
has suggested that besides its other responsibilities the DPC would also
be required to act as secretariat of the district panchayat. The WG has
rightly observed that "small measures, taken haltingly will not suffice.
Nothing short of a dynamic approach in this regard can hope to succeed
199

in realising the planning objectives" (p 76). Hence, the WG has

recommended creation of a planning cadre by locating competent officers
from different departments.
No doubt, this may serve the purpose in the transitional
period. But ultimately a separate cadre for the panchayats has to be
created by amending the Constitution. This will be discussed further
while commenting on the administrative support system suggested by the
WG.
The WG has deliberated upon the DPC's comp
osition and
functions and institutions functioning parallel to it. It has recommended
that where the rural population is more than the urban population, the
chairperson of the DPC and mayor/chairperson of the municipal
corporation/municipality be made its vice-chairperson and vice versa. No
doubt, it is an improved version of the existing system in which the
collector of the district is the chairperson of the DPC. Some other states
like Rajasthan and Kerala have already made such provision in their
Panchayat Acts. But the appropriate provision for chairpersonship of this
important committee, which in a real sense could be termed as the third
tier of governance, may be the following. If rural population of a district is
about 70 per cent of the total the chairperson of the ZP may be the
chairperson of DPC for two terms (10 years) and the chairperson of the
municipality for one term. In this way it will be a 15-year circle. The vice
chairperson might be either ZP or municipal chairperson depending on
the situation. It means if the ZP's chairperson is the DPC's chairperson,
the chairperson of the municipality could be vice-chairperson and vice
versa. If the rural-urban population is 50:50 either of the two would be
chairperson or vice-chairperson of the committee. The purpose here is
that the chairpersonship of this committee may be awarded in proportion
to the population of the district. This provision may not create any conflict
between the chairpersons of the ZPs and municipalities. Because after
enactment of the new panchayati raj system, conflicts between in elected
representatives of the panchayats and the MPs/MLAs and between the
former and the bureaucracy are already visible, the above proposition
appears worth considering to avoid tension between the elected
representatives of grass roots institutions.
For secretaryship of the district planning committee,
although the state legislation has envisaged creation of a separate post,
the WG, after weighing various options including the recommendation of
the G.V.K.Rao Committee, has recommended that the chief executive
officer of the DP should be its secretary as well. Here also what has
been suggested for chairpersonship may be emulated, meaning that the
CEO of the ZP may act as secretary of the DCP for two terms and the
CEO of the municipality of the district headquarters for one term in a
span of 15 years.
200

The WG has endorsed the recommendation of the

Committee on Entrustment of Powers to Rural Local Bodies for merging
the DRDA with the DP as it appeared to be a redundant structure after
the DP's constitution. In this way the administrative structure of the DP
would be strengthened which would enable this institution to discharge its
duties more effectively. It may be mentioned here that the central ministry
of rural areas and employment had already issued instructions to the
state governments in November 1995 for placing the functioning of
DRDA under the overall supervision, control and guidance of the zila
panchayat.
The WG has evolved a detailed district planning
methodology for the DPC. For requisite data the WG has suggested
putting together the available secondary data of different sectors and
aspects. Besides, the data on various aspects may also be collected
through sample survey and participatory rapid rural appraisal methods.
But for making available disaggregated data at district level on sustained
basis, the National Sample Survey (NSS) data may be made available at
this level. For this purpose, sample size of the NSS may also be
enhanced.
For proper functioning of the DPC, the WG has suggested
constitution of working committees of the members themselves to
discuss in detail the sectoral, financial, budgetary, rural and urban
linkages and other issues before finalisation of the draft development
plan of the entire district. This recommendation is worth considering as it
will smoothen the working of the DPC.
Rural and Urban Integration
One of the functions of the DPC as per Article 243-ZD(3-a)
is to include spatial planning, sharing of water and other physical and
natural resources as well as integrated development of infrastructure and
environment conservation in the district planning. This important function
of the DPC may facilitate interface between municipalities and
panchayats. Here, an attempt has been made to integrate rural and
urban area, which is essential for meaningful planning of the district as a
whole. But the integration should start at the sub-district or intermediate
level of the PR system. For this purpose, the WG rightly has said that "In
the location of services, (e.g., location of agriculture markets and mandis,
etc) consultation with the town panchayats/municipalities would be
essential. Since organic linkages between the panchayat unions and
town panchayats and municipalities in the area have ot be provided for in
the Tamil Nadu Panchayats Act, this lacuna needs to be corrected by
making appropriate representations of town panchayats and
municipalities in the concerned block planning committee. The working
201

group recommends that the Panchayat Act be amended, as necessary in

this context. Similar provisions should also be made in the act governing
town panchayats and municipalities" (p 89). Other states may also follow
the same procedure for integration of the rural area with the urban area
because without interfacing the two, decentralised planning may not be
opertionalised in its right perspective. Actually, this is the drawback of the
73rd and 74th Amendments to Constitution which do not spell out
integration of rural and urban areas except at the DPC level.
The WG has given a detailed arrangement of training for
enhancing the understanding of both officials and elected representatives
about decentralised governance, planning and development. The training
modules suggested for different categories of officials and elected
representatives are listed separately. But the course contents do not say
much on the problems of the SCs and STs and the various issues having
bearing on them except making a mention of development of the weaker
sections under master trainers programme and training of trainers of
panchayati raj functionaries. It may be suggested that need of providing
reservation for the SCs/STs, provision of the Fifth and Sixth schedule
areas, constitutional arrangement for such safeguards, concept of special
central assistance, special component plan and tribal sub-plan and
opertaionlising the same in formulating economic development and social
justice plans from the village to district level may also be made part of the
curricula for training.
Administrative Support System
For effective implementation of the decentralised planning,
the WG has recommended establishment of a state development council
(SDS) on the line of the National Development Council with chief minister
as its chairman and comprising of presidents of the district panchayats,
mayors of municipal corporations, cabinet ministers, senior
administrators and members of the State Planning Commission.
Technical examination and integration of the district plans with the state
plan, time bound planning processes for the annual plan, putting district
and sub-district staff under the control of panchayats as a temporary
phase and, finally, constituting their own cadres to solve the staff
problems, separate budgetary system reflecting districtwise allocation
and providing for some reasonable reappropriation powers to the local
bodies, inducting transparency in the functioning of the panchayats,
monitoring and evaluating of programmes and schemes are among the
other suggestions made by the WG for strengthening the administrative
system of local self-government institutions.
Provision of an administrative support for decentralised
planning is indispensable and the WG has suggested a number of
measures for it. however, two comments may be offered at this point.
202

First, the state panchayat council although placed under the

chairmanship of the panchayat minister as provided for in the Gujarat
Gram Panchayat Act, has not met even once in last 12 years. So how
can this council be made to meet regularly is not spelt out in the report.
The importance of this council is not in its formation but in its regular
meetings for sorting out the emerging problems between the state and
the panchayats. Second, although the WG has suggested constitution of
the panchayat cadre, on how it would be opertionalised, it is silent. The
experience of other states like Gujarati where such provision is there
shows that in state government still frequently interferes in its actual
functioning. For example, the state secretariat of the Gujarat has started
issuing transfer orders of teachers and `patwaris' (revenue official)
though they are panchayat employees, recruited by the Panchayat
Service Selection Board. Actually, remedy of this maladylies somewhere
else. Since panchayats have become the third tier of governance, they
should have their own service cadre on the lines of the central and state
services. For this, another amendment of the Constitution is needed to
provide for a panchayat service in part XIV of the Constitution.
The people's participation package envisaged by the WG
consists of panchayat raj institutions, voluntary groups, NGOs and
popular movements. But the important issue regarding people's
participation, which the WG has mentioned is `development from within'
which will "induce autonomous, self-managed efforts in each community,
cutting across al factions and interests among the population". In order
to realise this objective the WG has endorsed `namakku naame' (self
help in development) approach of the state government. At the same
time, it has rightly emphasised the need to make this approach an
"integral part of the state's development policy to protect it from being
blown apart by sudden shifts in political power or market forces".
To conclude, the WG has suggested a number of measures
to put decentralised planning on track for both rural and urban
development. Strengthening of the planning machinery at different tiers
of panchayats, integration of rural and urban areas at sub-district level,
adequate administrative infrastructure at the decentralised level, people's
participation and development within have been over-due in the sphere
of decentralised governance, planning and development. The WG's
report is relevant not only for Tamil Nadu but for other states also. If this
report, along with the suggestions made here, is implemented in letter
and spirit, it will certainly strengthen the panchayati raj and decentralised
planning in the state.

203

References

Purohit,P.V. (1998): `Panchayats in Gujarat', Panchayati Raj Update,

February.
Ramachandran, V (1994): `Powers, Authority and Responsibilities of
Panchayats', Occasional Paper 5, Ministry of Rural Development, p 29.
Sundram, K V (1997): Decentralised Multilevel Planning - Principles and
Practice Asian and African Experiences, Concept Publishing Company,
New Delhi, p 514.

Source : Economic and Political Weekly, Vol. XXXVI No. 12, March
24-30, 2001.

204

STRATEGIES FOR POPULAR PARTICIPATION

-

Suresh Misra

The foregoing chapter describe that popular participation

can be an effective means of promoting policies for economic and social
development. From available experience, it is possible to identify some
of the basic elements of a strategy that will encourage citizens to pursue
an active role in development. Essential to such a strategy is a sincere
commitment by national political leaders to promote popular participation.
This means not merely a verbal commitment but rather a willingness to
create the necessary institutional structure and other political conditions
that make popular participation possible. These leaders, have to be
prepared to accept the consequences of popular participation. This latter
conditionis crucial, since genuine popular participation often produces
differences between the government and various groups in society over
development priorities. In economic matters, governments tend to view
participation as a means of contributing to development in the form of
more taxes and work, whereas people tend to regard it as a means of
increasing their consumption of the fruits of development. Where
differences become acute, governments at times are not loath to stifle or
manipulate popular participation rather than seek an accommodation with
it. Attempting to mute the voice of a once aroused citizenry by force may
create consequences and lead to a serious confrontation between the
people and the government.
Chief among the institutional requirements for successful
popular participation is decentralization of the governmental institutions
so as to bring public decision-making processes as close as possible to
be people. To ensure that the public if informed about major issues and
that the government is responsive to their preferences, it is necessary to
create an effective rapport between the government and the people.
There is also need to establish representative institutions at the village
and intermediate levels around which citizens participation can be
organized. Whatever form this institutional structure may take, its
effectiveness will ultimately depend on the public's perception of how
efficiently and effectively it can resolve their problems.
A strategy of popular participation should pay careful
attention to the way people are initially motivated for active participation
in development. Not uncommonly, governments attempt to mobilize
people through promises of immediate benefits. When these are slow in
forthcoming, there is danger of a psychological let-down which could give
way to public apathy or violence. There is a need to offer the people
realistic incentives for participation; emphasis should be placed on the
benefits to be derived from the realization of medium and long-term goals
rather than on immediate gains that are unobtainable. To encourage the
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population at large to accept deferment of the present benefits for greater

future gains, the governments should reveal their goals and the methods
they expect to use in achieving them and also indicate the burdens that
the various groups in society can be expected to shoulder. This can be
facilitated through education programmes that attempt to foster among
the people a sense of social responsibility. Great care should be given to
projecting "authentic and realistic images of the future societies that
would justify the striving for development and permit the ordering of
objectives and instruments within coherent societal policies.
The
practicability of popular participation depends largely on progress in this
direction but at the same time is a condition of such progress."
Since the roles of government officials, local leaders and
the masses of the people for continuing decision-making are highly
uneven, training should be an integral part of a popular participation
strategy. Such training, on the one hand, should involve orientation
about the nature of popular participation in decision-making and, on the
other, impart those necessary skills, such as management methods and
local development planning techniques, that may be required by the
particular institutional arrangements in a given country.
The
effectiveness of such training has been shown by experience to depend
in large measure on the particular techniques used for conveying the
desired information, skills and attitudes as well as on the subsequent
monitoring of activities.
For example, experience in successful
community development programmes indicates that training techniques,
combining theory with practice appear to be the most effective.
Monitoring and evaluation of popular participation constitute
a final component of a strategy. Since the effectiveness of popular
participation depends on institutional arrangements, it is essential to
assess their performance, so that corrections can be made, should they
begin to fail. Such evaluation should be approached systematically and
for this a number of techniques have come into use.
By taking these components into account, it is possible to
outline a popular participation strategy. Such a strategy must focus
attention primarily on the local level, where direct participation by the
people is most possible, but must also be concerned with linking local
institutions to intermediate or national institutions, or both. The existence
or establishment of local institutions, around which participation can be
mobilized, is an essential condition for achieving citizen involvement.
While the nature of these institutions will vary, depending on the social
and economic system of a country, they must perform two functions.
First they should serve to organize discussion and transmit local opinions
to higher level decision-makers, (this could be termed the advocacy
function). Next, they should serve a s a vehicle for making and
implementing decisions of local concern, as in the case of community
206

improvements. Both of these functions have been a part of normal

community development practice, but it should be emphasized that they
should be performed simultaneously.
There is a little evidence to indicate that popular
participation on a sustained basis emerges spontaneously. Rather it
must be initially mobilized and then maintained over time. The types of
institutions in which the people are to participate can vary from those in
which participation is episodic and ritualistic to those which involve
people on a continuing basis. Evidence points to the need for institutions
which centre on people's most salient concerns and, therefore, can
maintain popular interest and involvement. These are most frequently
economic institutions, such as factory or farm. Co-operatives and other
forms of community economic association are institutions which can give
a tangible pay-off and thus stimulate participation. However, much
depends on the degree to which the local institution is invested with real
authority to take and implement decisions within its area of competence
and the extent to which the activities and programmes of one institution
are supported by other institutions with different functions.
While the creation of effective local institutions for popular
participation is frequently a difficult process, the rewards in terms of
development are correspondingly greater. Not only can the institutions
serve as focal points for detecting and influencing public opinion about
development issues but they can also facilitate increased use of local
resource, especially labour, for local development. Moreover, such
institutions can help structure economic production and services in a
more efficient and socially equitable manner.
An adequate infrastructure of local institutions, the
mobilization of the people around them and the training of leaders, local
government officials and the people themselves are necessary but not
sufficient. There is also a need for procedures to link the diverse local
institutions with the national planning and administrative machinery to
achieve a balanced development effort. While the exact nature of such
procedures will vary from country ot country, a type of arrangement which
is gaining favour is the creation of intermediate-level institutions at the
regional or micro-regional (area) levels. The primary functions of such
institutions is to act as a bridge between the local and the national levels.
This takes two forms. On the one hand, the regional or micro-regional
institutions consolidate the opinions and demands of the local institutions
in their areas and present a regional view of development problems, like
consolidating cooperative activities, through a regional co-operative
union.
On the other hand, regional institutions can facilitate
disaggregation of national plans. Moreover, they may determine the
spatial allocation of development projects based not only the resources
made available from central authorities but also on those that can be
207

generated locally. It is this function which makes popular participation

can be most effective, since increases in popular contributions can be
obtained and activities performed in an organized sequence. Thus a
regional co-operative union can assist in obtaining and administering the
necessary large-scale inputs, e.g. credit, and assets marketing of
products.
There are a number of conditions for the successful
functioning of intermediate-level institutions. These must have direct
links with local institutions without which their activities would be largely
meaningless. They must have the authority to take decisions on the
allocation of available resources within the region. Since the making of a
regional plan and the supervision of its implementation are complex
technical tasks, there is a need for trained regional development officials.
It is also desirable to train local official sand leaders in the essentials of
regional development.
Moreover, to maintain the links between
intermediate-level and the local institutions and ensure that the technical
requirements of projects do not give rise to social problems, there is a
need for a steady flow of information about programme performance,
monitoring and evaluation. Such a flow has proved most useful in
promoting the success of popular participation.
In short, a comprehensive strategy for promoting popular
participation within an overall framework of the national development
strategy can prove most effective if undertaken at all levels of decisionmaking within a society. At the national level, leaders must give the
guidance and symbolic content to mass citizen involvement in decisionmaking.
This requires institutions and procedures that facilitate
transmission of popular opinions and preferences. At the local level,
individual participation must be aggregated, oriented and given purpose
through decentralization of decision-making authority as appropriate to
the particular national context. Between the two levels, it has often been
found useful to encourage intermediate-level institutions capable of
aggregating local preferences opinions and activities and disaggregating
national plans, programmes and policies. In this sense, popular
participation can become an integral strategy for promoting development
and the national, local and regional levels by making available to
planners the voluntary efforts and experience of the people.

208

FISCAL DECENTRALISATION AND DEVOLUTION

OF FINANCIAL RESOURCES
(A study of village panchayats in India)

O P BOHRA*
1.

Introduction

The decentralisation is a term generally referred as various

kinds of arrangements of issues of intergovernmental relations. It ranges
from transfer of administrative, functional and financial powers from
national governments to sub-national (state/province and local)
governments. The issue of decentralisation in general and fiscal
decentralisation in particular has been a matter of discussion,
internationally and nationally. It has attracted a debate amongst a large
number of fiscal experts. One school of thought argued in favour of fiscal
decentralisation with logical and empirical support. On the other hand the
other group of fiscal experts strongly disfavor it.
Let me quote Oatess view with regard to Fiscal
Decentralisation and Economic Development, He mentioned that the
basic economic case for fiscal decentralisation is the enhancement of
economic efficiency: the provision of local outputs that are differentiated
according to local tastes and circumstances results in higher levels of
social welfare than centrally determined and more uniform levels of
outputs across all jurisdictions. Although this proposition has been
developed mainly in a static context (see treatment of Decentralisation
Theorem, 1972), the thrust of the argument should also have some
validity in a dynamic setting of economic growth. There surely are strong
reasons, in principles, to believe that policies formulated for the provision
of infrastructure and even human capital that are sensitive to regional or
local conditions are likely to be more effective in encouraging economic
development than centrally determined policies that ignore these
geographical differences. There is incidentally no formalized theory of
such a relationship between fiscal decentralisation and economic
growth.
While discussing the issue of fiscal decentralisation Ebel
and Vaillancourt (2001), explained the case for decentralisation with the
three economic factors such as economic efficiency, revenue
mobilisation and the size of jurisdiction. They argued that the local
governments in the proximity of the masses can adjust budget (costs) to

Economist, National Institute of Public Finance and Policy, New Delhi. Email:opb61@hotmail.com

209

the local needs and tastes (preferences) in such a manner that it leads to
best delivery of local public services 1. In the case of revenue
mobilisation by local governments he cited the example of property tax,
which is collected more efficiently by local govt. than central govt., in the
developed countries. The third factor is, appropriate pricing of local
services done more efficiently by local govt.
In the literature the issue of macroeconomic
mismanagement and instability in the federal countries has drawn
immense attention and it has been concluded by some of the fiscal
experts that decentralised governance, is incompatible with prudent fiscal
management (See Prudhomme, 1995; Tanzi, 1996). Anwar Shah (1999)
has reflected upon the dangers of decentralisation for macroeconomic
management and provided a synthesis for theoretical and empirical
literature as well as some new evidences. 2 He has drawn an overall
conclusion that the application of fiscal federalism principles to the design
of economic constitutions offers a significant potential for improving the
institutional framework for macroeconomic policy, provided that careful
attention is paid to the design of institutions vital for success of
decentralisation policies. Amongst the fiscal experts a broad consensus
has been arrived in the context of Musgraves trilogy of public functions,
namely, allocation, redistribution, and stabilization, that the function of
allocation can be assigned to lower level of governments, the other two
would be more appropriate for the national government. Therefore, the
macroeconomic management, particularly stabilization policy largely
consider as clearly a central function (Musgrave, 1983; Oates 1972).
The allocative functions indicate that suitability of extent of
decentralisation for a particular state. It answered the quarries, such as,
which taxes are best collected and retained by the central or local
governments; extent of local autonomy (for local taxation); what are taxes
most suitable for revenue sharing and the local governments possibility of
piggy-back on central taxes. With regard to expenditure, it deals with the
questions such as, best division of expenditure responsibilities of the
various tiers of government for efficient delivery of public services.
The distributive function relates to how best the resources
can be divided among different levels of government to achieve income
redistribution through various mechanisms like revenue sharing formula
1

The proximity to the local masses would lead to gains in local welfare is derived from median voter
theories of public expenditure determination. These modules are generally applied in the developed
countries and are heavily influenced by the democratic process of budget making. The model predicts that
the level of tax effort and expenditure mix in local areas are responsive to (i) changes in the relative prices
of public services; (ii) community income, and (iii) local preferences. Moreover, not only are people likely
to get what they want and are willing to pay for but they are more likely to hold elected representatives
accountable for the quality of services delivered. Research in the United States demonstrate that as the cost
of services go up, local governments purchase less. If local income rises communities spend more on local
services; and , if the structure of population changes, so does the mix of public services (Bahl 1991).
2
See: Anwar Shah (1999), Fiscal Federalism and Macroeconomic Governance: for better or for Worse?,

210

or assignment of expenditure etc. It focuses on issue of how a particular

expenditure assignment across levels of government or an expenditure
allocation within a particular tier of government affects different income or
expenditure classes.
The rules and practices of fiscal federalism very much affect the
macroeconomic management and economic stabilization. In a flexible
federal government, the local governments are given free hand to borrow
without any constraint from central government; the impact is bound to
affect the overall fiscal position of the economy and consequently fiscal
stabilization. The larger revenue sharing rather than assignment of
particular taxes to individual tier of government would tend to narrow
down the potential for reducing the overall fiscal deficit. Therefore, Tanzi
(1995) had advocated for the design of fiscal federalism structures on
both the tax and expenditure sides have important ramifications for
macroeconomic management.
Another problem associated with the issue of
decentralisation is of corruption (Tanzi, 1995c; PrudHomme, 1994). It
has been argued that the local governments are less equipped and
sophisticated than national government. The brightest people would have
more inclination to go to national government with better career
prospects.3 It has been further argued that at the national level the public
administration is more transparent and accountable.4 It is also argued
that by and large best and most talented people will go to the national
government and the quality of local government institutions will tend to be
lower. In this direction another argument put forth that the lower salaries,
many regulations 5 and greater contiguity of employees and citizens,
would have more possibility of corruption or low quality of local
governments. Tanzi (1995c) has expressed his observation that in
several countries more corruption is prevailing at local level than at
national level.6 He cited the example of United States, where in many
cases of explicit corruption have been reported over the years in local
level but much less at the national level.

3
In India,, with the implementation of Vth Pay Commission recommendations, all the states and local
governments (Urban) employees are treated equally. This has attracted a good people at local level to some extent.
4

In the case of India, transparency and accountability at all the three levels of governance is more debatable
with a large number of scams at national and state level, and also at local level, of course, with less quantum at
local level. The local governments (particularly PRIs) are accountable to various financial audits as well as social
and physical audits.
5

With the administrative reforms in many States, have reduced the regulations and made the procedure simple.

8. Globally, the phenomena of corruption are common to national level of government also. (See, Global
Corruption Report). It is difficult to provide authenticated proofs of corruption at all the three levels in India.
However, a casual
observation is that the however, the number of cases of corruption is in the order of more at local level (being large
in numbers), than at state and national level, whereas the quantum of corruption is more at national and state level
than at local level.

211

The issues of fiscal decentralization, public finance and

intergovernmental fiscal relations have been discussed and debated in
the literature internationally OECD-member countries in general and, in
the context of decentralised federal countries like Argentina, Brazil,
Canada and Germany, and centralized countries federal countries such
as Australia, India and Pakistan particular. In the case of India, for long,
since independence, the Constitution provides arrangements regarding
the fiscal transfers from Centre to sub-national governments, States (and
now to local governments).
The rationalization and harmonization of revenue sharing
and tax assignment as well the allocation of expenditure responsibilities
among different tiers of government comprise important elements in the
many economic functions of government. These fiscal federalism rules
include allocative and distributive considerations as well as increasingly,
of macroeconomic stabilization.7
Allocative Issue- Extent of decentralisation and tax
collection- It deals with the issue of extent of decentralisation and its
suitability for the particular federal state, like, what are the taxes best
collected and retained by the which tier of government, central, state or
local; autonomy of state/local govt. in structuring their own taxes.
2.

Delegation or Devolution of Powers:

Delegation It is a situation where local governments act as

agents for the central government executing certain functions on its
behalf. This is kwon as top-down approach, that is from the viewpoint of
central (state) government.
Devolution- It refers to situation where not only implementation
but also the authority to decide, is in the hands of local governments- that
is local autonomy, this is called bottom-up approach, from the
viewpoint of local citizens.8
3.

Fiscal Federalism in OECD Member Countries

The OECD member countries are facing a complex public

management issue. The unitary and federal members countries faces a
different problems of public management. In some of the countries there
are strong sub-national governments (SNGs). On the other hand few
countries are having weak sub-national governments and some are in
7

Shome, P. 1999, Fiscal Federalism in India: Experience and Future Directions, in Fukasaku, Kiichiro and R.
De Mello Jr. (1999) (eds.) Fiscal Decentralisation in Emerging Economies- Governance Issues, OECD, Paris.
8

(See, Bird, R.M. (1998) Designing State-Local Fiscal Transfers in Uttar Pradesh (Unpublished).

212

between. Therefore, there is no single OECD model. It is generally

observed historically that the federal countries tend to have
larger/stronger SNGs. In the case of unitary countries, such as France,
Greece, Italy, New Zealand and the United Kingdom, the SNGs are of the
weakest case. In the recent years, the SNGs in these countries have
grown stronger than earlier.9
4.

India Scene- Decentralisation at the third level of governance

The issue of decentralisation is much discussed in most of

the federal countries as well as in India. In the recent past it has received
different opinions for and against (McLure Charles Jr.; 1995 and
PrudHomme Remy; 1995). In India, the 73rd Amendment to the
constitution is a major step in this direction. The amendment is designed
to revitalise the sub-national rural Governments (Panchayats) to promote
growth in rural economy. As it has given legal recognition to the third tier
of governance, i.e., Panchayati Raj Institutions (PRIs), it become an
important landmark in the history. It provides for a uniform three-tier
structure of the Panchayats- specifically at the district, block and village
levels and specification of areas of responsibilities (as enlisted in the 11th
Schedule of the Constitution) of the Panchayats at the three tiers. In
conformity with the amendment (73rd CAA) most of the States
amended/enacted their Acts and went for panchayats elections.
However, the devolution of power has been far from smooth.10
In the planning process the issue of decentralisation was
also discussed in the Shukla Committee report. The Committee has
suggested a number of measures aimed at devolving more power for
utilising plan funds (see Shukla Committee Report. 1996).11
It is expected that the step of decentralisation may help in
the efficient provision of some of the public goods and services
(Rajaraman, Indira and Amaresh Bagchi, 1995). It is also expected that
the delivery of public goods and services are most effective when the
responsibilities of discharging of these functions are performed by these
levels of governance, which are closet to the people. In the Eleventh
Schedule in which there are about 29 subject matters enlisted as the
functions of the third rural tier (Village Panchayats) governance in the
country. Of this, more than 21 functions are of developmental and social
responsibility. Some of the development and maintenance nature of
functions which are more responsive to the local conditions are expected
9

Blondal, John, (1999), Fiscal Federalism in OECD Member Countries.

For instance, in Rajasthan the elected representatives had complained about the delay in devolution and in
some of the states the elections are also being delayed.
10

11

In one of the meeting of Planning Commission it was also announced that the "decentralisation of the
planning process" would be a "thrust area" in the formulation of Plan.

213

to deliver more effectively at the local government (VP) level, (for

example, child welfare and education of development nature and of
maintenance variety- water supply and sanitation). Due to inadequate
formal skills available at the village level do raise some doubts about the
efficient delivery of these functions. But some empirical evidence (of west
Bengal) does indicate that there is all the possibility of improved delivery
of goods at the lowest tier of PRIs (Rao, 1995).
These sub-national governments, i.e., VPs would need
some additional resources and skilled manpower to discharge the
assigned functions. It is generally felt that the administrative skills
deteriorate at the lower level of governments, in this case the third tier of
PRIs. Therefore, at the VP level there is a need of flexibility to meet
additional requirement of manpower. There should be freedom to enter
into fixed - term contracts. There is a need to reassign manpower from
the state-level administration to Panchayat cadres.
Hence, it expected that the VPs should be given some
autonomy in the spheres of functions assigned to them to cater to the
needs of people at the grassroots level. Autonomy in functioning in turn
requires at least some measure of fiscal autonomy.
In the rural context the fiscal autonomy is very complicated
issue because the number of VPs are very large 12 . Moreover, lack of
clear demarcation of functions at three tiers of PRIs adds to its
complexity. The rural local bodies are also made responsible for the
development of rural economy because most of the subject matters
enlisted in the Eleventh Schedule are of development and social
responsibility.
After the implementation of this amendment, a fair degree
of fine-tuning of local functional assignment should be possible (at least
in principle) in the rural sphere because of the three-tier structure of
governance introduced by the 73rd Amendment, is an effort in this
direction.
5.

Financial Devolution to Village Panchayats

It was incumbent at the part of state government to

transfers the financial powers to the VPs according to the amended
Panchayats Act, in conformity with the 73rd CAA. Most of the States
enlisted the financial powers in the Act, which were already entrusted to
the panchayats. Barring a few States where some new financial powers
have been transferred, for the remaining states, the situation was

12

There are about 2.40 lakhs Village Panchayats

214

remained unaltered. The fiscal position of the VPs as per the new Acts is
analysed in the following discussion.
(a) Taxation Powers Assigned to the VPs as per the State Panchayat
Acts:
Across different States the village panchayats are entrusted
with a number of taxes, the important taxes amongst them are: (i) land
tax (non-agricultural); (ii) house/building tax; (iii) vehicle tax; (iv) tax on
profession, trade, and callings; (v) tax on fair and other entertainment; (vi)
tax on advertisement; (vii) lump sum levy on factories in lieu of taxes and
(x) special tax for construction and public works. For the provision of
public facilities, VPs also levy fees and charges (user charges). These
include (i) water rate; (ii) lighting rate/fee; (iii) street cleaning fee; (iv)
conservancy fee; (v) drainage fee; (vi) sanitary fee for public latrines; and
pilgrimage fee. The VPs also levy some kind of fee for the use of
common resources like: (I) fee for the use of Panchayat shelter; (ii) user
charges for hospitals and schools; (iii) fee for the use of common
resources (grazing land etc.); (iv) fee on markets and weekly bazaars; (v)
fee on animals sold.
(b) Taxes in practice (actually) levied and collected by the VPs :
Though as per the Acts there is a big list of taxes and fees
assigned to the panchayats but in practice the taxation powers have
been narrowed down either the effective notices/government orders have
not been passed or these powers have not been entrusted to the VPs. In
practice the major taxes levied and collected by the VPs are: (I)
House/building tax; (ii) Lighting rate/tax; (iii) Profession tax; (iv)
Entertainment tax/fees; (v) Vehicle tax/tolls; and Pilgrim tax etc.
6.

Significance of revenue sources at Village Panchayats level:

(i) Own revenue: The revenue composition for the major 20 States
for the period of pre and post 73rd CAA, i.e. 1990-91 and 1997-98 is
being discussed here. The revenue composition in per cent and per
capita terms are expressed in the next section Amongst the major States
the VPs in the State of Maharashtra has mobilised from own sources the
highest amount (Rs 96.76 crores) in 1990-91 and the lowest was for
Tripura (Rs 0.01 crores). The impact of 73rd CAA seems to be very little
on the revenue mobilisation from own sources at the VP level, because
most of the States have not transferred any new taxes/fees to the VPs. In
1997-98, these two States, Maharashtra and Tripura have collected Rs.
328.58 and Rs. 0.06 Crore, respectively. It indicates poor financial
performance of the third tier of governance with abysmally low impact of
the new amendment.
215

(a) Own Tax Revenue: In respect of revenue from own taxes, in 1990-91,
Maharashtra has collected the highest amount (Rs. 91.93 crore), and the
lowest revenue was mobilised by Himachal Pradesh (Rs. 0.02 crore).
The situation did not change in the post-73rd CAA period. The States of
Maharashtra and Himachal Pradesh have mobilised Rs. 312.29 crore
and Rs. 0.68 crore, respectively.
(b) Non-Tax Revenue: In 1990-91, the highest revenue from non-tax
sources was collected by Himachal Pradesh, Rs. 28.41 crores and the
lowest by Tripura, Rs. 0.01 crores. The corresponding figures for the
year 1997-98 were Rs. 48.51 crores, for Maharashtra and Rs. 0.03
crores for Assam.
(ii) State Transfers The dependency of the VPs on State
transfers is indicative of fiscal autonomy at the sub-national (VPs) level of
governance. The State transfers include the revenue from assigned
taxes, shared taxes and the State grants. It was observed that in the
States of Andhra Pradesh, Gujarat, Punjab and Tamil Nadu, the VPs are
more dependent on the State transfers. In these States the State
transfers accounted for more than Rs. 50 crores in 1990-91. The post
73rd CAA effect is visible to some extent in some of the States. The VPs
in the States of Andhra Pradesh, Kerala, Madhya Pradesh Tamil Nadu
and Uttar Pradesh had received more than Rs 100 crore.
(a) Assigned taxes: The States of Andhra Pradesh, Gujarat, Karnataka,
Kerala, Madhya Pradesh , Maharashtra and Tamil Nadu assigned certain
taxes to the VPs and accordingly transferred the revenue from assigned
taxes on origin or formula basis. It is observed an increase in the revenue
from 1990-91 to 1997-98 by way of revenue fro m assigned sources.
(b) shared taxes: Similarly, the States of Assam, Gujarat, Kerala, Orissa,
Punjab and Tamil Nadu share some the taxes and pass its revenue to
the VPs. In the States of Kerala and Orissa, an increase in the revenue
from shared taxes was noticed from 1990-91 to 1997-98.
(c) State grants: Barring Haryana, in most of the States the grants from
States to the VPs has increased from 1990-91 to 1997-98. This increase
in the grants from pre to post 73rd CAA indicates that the fiscal autonomy
of the VPs had declined over the period.
In per cent term, the extent of fiscal autonomy of the
panchayats are indicated where the revenue from own sources are more
than half and if the transfers from the States forms the major constituents
of the local fisc, indicates less fiscal autonomy and more dependency of
the panchayats on the States. As shown in the table, revenue from own
216

source in 1990-91 were more than half in the case of Assam, Haryana,
Karnataka and Maharashtra. The post reform (73rd CAA) period the
impact seems to become negative. However, the States of Haryana and
Maharashtra still continued to collect more than 50 per cent of revenue
from their own sources. The transfers from the States were more than
half in the case of Goa, Gujarat, Himachal Pradesh, Punjab, Tamil Nadu,
Tripura and West Bengal, in pre 73rd CAA (1990-91). In 1997-98, the
panchayats in the states of Kerala, Punjab, Tamil Nadu, Tripura and
West Bengal received more than 50 per cent of revenue by way of
transfers from the States.
If the per capita revenue from own sources mobilised by the
panchayats is considered as an indicator of revenue effort made by the
VPs during pre and post reform (73rd CAA) period, it was observed that
the VPs in the States of Andhra Pradesh, Goa, Haryana, Kerala,
Maharashtra and Punjab have mobilised more than Rs 10 per capita in
1990-91. In 1997-98, the situation has improved in terms of per capita
amount, however, the States remained the same. The scenario of states
transfers to VPs in per capita term indicates that the panchayats in the
States of Andhra Pradesh, Goa, Gujarat, Kerala, Punjab and Tamil Nadu
have received substantial per capita revenue from the states during both
the years.
7.

Estimation of Buoyancy Coefficients of own revenue (tax and

non-tax)

For the period from 1990-91 to 1995-96, the growth in own

revenue (tax and non-taxes) of VPs has been estimated in terms of its
response to increase in the non-primary Gross State Domestic Product
(GSDP) (excluding mining and quarrying) of the State. It was observed
that in the States of Andhra Pradesh, Goa, Himachal Pradesh, Kerala,
Maharashtra, Punjab, Tamil Nadu and Tripura the coefficients were found
to be more than unity, while in the remaining States it was less than unity.
The States of Rajasthan and West Bengal, had the negative coefficients.
It indicates that the barring 8 states as mentioned above, in the remaining
states the impact of new amendment was not very much encouraging.
The panchayats have not been given substantial financial powers to
mobilise more revenue from its own sources. Therefore, there is a need
to strengthened the financial autonomy of the panchayats through more
fiscal devolution to the VPs.
8.

Conclusion

From the above discussion it can be infer that in most of the

States the devolution of financial powers to the VPs has not been taken
place. The taxes, which were levied before 73rd CAA, are still continued
and no new taxation powers have been assigned to them. To strengthen
217

the sub-national governments at the lowest level of federal structure, it is

needed in addition to the effective exploitation of the existing taxes the
more financial powers should be transferred to the VPs so that these
bodies can meet the increased demand of basic services of the rural
masses.

218

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